FAQ Customs Regulations and Procedures

In Switzerland, customs tariffs and classifications are determined according to internationally recognized standards and guidelines. The classification of goods is crucial as it determines the customs duty that companies must pay for importing or exporting goods. The basis for the classification of goods in Switzerland is the Harmonized System (HS), the globally recognized international goods classification system. Here are the steps on how customs tariffs and classifications are determined in Switzerland:

1. Harmonized System (HS):
The Harmonized System (HS) is an internationally recognized classification system for goods. Switzerland uses the HS as the basis for its customs tariffs. The HS consists of a systematic list of goods with codes, each assigned to different product groups.

2. Determining the Customs Tariff Number:
Goods are classified into the HS based on their characteristics and properties. The customs tariff number is a code that indicates the exact classification of a good. This number determines the applicable customs duty rate.

3. Customs Tariff Nomenclature:
Switzerland uses the Common Nomenclature of the European Economic Area (EU) as the basis for its customs tariffs. This nomenclature is very similar to the Harmonized System (HS), but there are some differences specified by the EU.

4. Consult Customs Tariff Databases:
The Swiss Federal Customs Administration (FCA) provides customs tariff databases and online tools to assist companies in determining the customs tariff number for their goods. Companies can consult these databases to find the correct classification.

5. Customs Tariff Consultation:
Companies can also contact the Customs Tariff Consultation service of the Swiss Federal Customs Administration to clarify specific questions regarding the classification of their goods. The Customs Tariff Consultation offers support in determining the correct customs tariff number.

6. Customs Tariff Rulings:
Companies can apply for customs tariff rulings if needed, to obtain binding information on the classification of their goods. This provides legal certainty and clarity regarding the applicable customs duties.

It’s important to emphasize that the exact classification of goods can be a complex matter, and companies should contact the relevant authorities if in doubt to ensure they use the correct customs tariff number for their goods. Incorrect classifications can lead to unexpected costs or legal problems.

For customs clearance in Switzerland, a range of documents is required. The exact requirements can vary depending on the type of goods, mode of transport, and other specific factors. However, here are the basic documents often required for customs clearance in Switzerland:

1. Handelsrechnung (Commercial Invoice):
This is a detailed invoice that includes the value of the goods, quantities, trade terms, and other relevant information. It’s used to calculate customs duties and taxes.

2. Bill of Lading oder Airway Bill:
This document confirms the transport of the goods. It’s issued by the shipping company or carrier and contains information about the shipment, the consignee, and the goods themselves.

3. Customs Declaration:
A form that contains all the necessary information about imported or exported goods. It’s submitted during customs clearance and is crucial for the correct taxation and control of the goods.

4. Certificate of Origin:
A document that specifies the origin of the goods. This may be required for applying preferences under trade agreements or to comply with certain customs regulations.

5. Certificate of Insurance:
A document that confirms the conclusion of transport insurance for the goods. This is often required to cover the risk of transport.

6. Customs Value Declaration:
A document that states the customs value of the goods. This is important for calculating customs duties.

7. Packing List:
A list describing the goods contained and their packaging. It includes information such as weight, volume, and number of packages.

8. Transit Document:
A document that may be required when goods are transported through Switzerland to another country without affecting Swiss customs sovereignty.

9. Specific Certificates or Permits:
Depending on the type of goods, specific certificates or permits may be required. This can include, for example, environmental certificates, health certificates, or special licenses.

Businesses should familiarize themselves with Switzerland’s specific customs regulations before shipping and ensure all required documents are properly prepared. Collaborating with customs agents or freight forwarders can also be helpful to ensure a smooth customs clearance process.

Switzerland has concluded a number of Free Trade Agreements (FTAs) with various countries and economic regions to facilitate international trade. Here are some of Switzerland’s most important Free Trade Agreements:

1.Agreements with the European Union (EU):
Switzerland has a series of bilateral agreements with the European Union, including Bilateral Agreement I (1999) and Bilateral Agreement II (2004). These agreements concern various aspects of cooperation, including trade.

2. Agreements with EFTA Countries:
Switzerland is a member of the European Free Trade Association (EFTA). It has concluded bilateral free trade agreements with various EFTA countries, including Norway, Iceland, and Liechtenstein.

3. Free Trade Agreement with China:
Switzerland has concluded a Free Trade Agreement with China, which entered into force on July 1, 2014. This agreement promotes trade and economic cooperation between the two countries.

4. Free Trade Agreement with Japan:
The Free Trade Agreement between Switzerland and Japan entered into force on September 1, 2009. It aims to promote trade and economic integration between the two countries.

5. Free Trade Agreement with Canada:
The Free Trade Agreement between Switzerland and Canada entered into force on July 1, 2009. It covers trade in goods and services, as well as investments.

6. Free Trade Agreement with South Korea:
The Free Trade Agreement between Switzerland and South Korea entered into force on July 1, 2006. It aims to promote trade and economic cooperation between the two countries.

7. Agreement with Mercosur:
Switzerland has signed a free trade agreement with the Mercosur member countries (Argentina, Brazil, Paraguay, and Uruguay). However, the ratification of the agreement is still pending.

It’s important to note that trade agreements can change, with new agreements being added or existing ones updated. Businesses engaged in international trade should therefore regularly inform themselves about current free trade agreements to benefit from the associated advantages. Information on the latest developments and specific agreements can be obtained from official Swiss authorities or trade organizations.

To benefit from customs preferences under free trade agreements, companies must follow certain steps and meet the requirements of the respective agreements. Here are fundamental steps companies can take to utilize customs preferences:

1. Understand Product-Specific Requirements:
Each free trade agreement contains specific rules and requirements for claiming customs preferences. These may relate to rules of origin, minimum processing requirements, and other criteria. Companies must understand the product-specific requirements.

2. Determining the Country of Origin:
Businesses must ensure their goods meet the rules of origin of the free trade agreement. This requires accurately determining the country of origin of the goods, based on the established criteria of the respective agreement.

3. Issuing the Proof of Origin:
To benefit from customs preferences, a proof of origin must be prepared and presented to customs. This can take the form of a certificate of origin or other suitable documents that demonstrate compliance with the rules of origin.

4. Registration with Customs:
In some cases, companies need to register with customs to take advantage of the free trade agreement’s benefits. This may be required to be treated as a preferred importer or exporter.

5. Stating the Preferential Origin in Trade Documents:
Companies must clearly state the preferential origin of the goods in the trade documents. This can be done on the commercial invoice or other relevant documents.

6. Implementing Internal Processes:
Companies must implement internal processes to ensure they comply with the free trade agreement’s rules of origin. This can include collaborating with suppliers, accurate documentation, and staff training.

7. Staying Updated on Agreement Changes:
Free trade agreements can change, and businesses need to regularly inform themselves about updates and amendments. It’s crucial to ensure compliance with the latest requirements.

Yes, various countries implement restrictions, sanctions, or embargoes on the export of certain goods to specific countries. These measures can be enacted for political, economic, security-related, or other reasons. The exact restrictions can vary depending on the country and the circumstances. Here are some examples:

1. Weapons and Armaments:
Many countries have restrictions on the export of weapons, military equipment, and dual-use goods (goods that can be used for both civilian and military purposes). These are often sensitive goods that require strict control and authorization.

2. Technology Goods:
The export of technology, especially that with security-relevant applications, can be restricted. This includes high-tech products, software, or know-how that could be used for military or security-related applications.

3. Sanctions against specific countries:
Some countries are subject to international sanctions that restrict the export of certain goods and services. These sanctions can be imposed by individual countries or by international organizations such as the United Nations, the European Union, or other regional groups.

4. Nuclear Materials:
The export of nuclear materials and technologies is subject to strict international controls and restrictions. These controls are intended to prevent the spread of nuclear weapons and nuclear proliferation.

5. Embargoes for political reasons:
In some cases, embargoes may be imposed for political reasons. This can happen in response to international conflicts, human rights violations, or other political matters.

6. Sanctions under Trade Agreements:
Some countries have specific restrictions within the framework of trade agreements that regulate the export of certain goods to other countries. These restrictions can be contained in bilateral or multilateral agreements.

It is important to emphasize that these restrictions can be dynamic and may change due to political developments or international events. Therefore, companies engaged in international trade and exporting goods should familiarize themselves with the current export control regulations of the countries concerned and ensure compliance to avoid legal consequences. The relevant customs authorities, ministries of trade, and external experts can provide support in understanding the currently applicable regulations.

In Switzerland, the export of sensitive goods, particularly so-called dual-use items (goods that can be used for both civilian and military purposes), is subject to specific export control regulations. The Federal Customs Administration (FCA) and the State Secretariat for Economic Affairs (SECO) play an important role in this. Companies wishing to export certain goods should ensure they obtain the necessary permits and licenses. Here are some key points:

1. Dual-Use Goods:
Dual-use goods are goods, technologies, and software that can be used for both civilian and military purposes. The export of such goods is subject to authorization in Switzerland.

2. Authorization by SECO:
The State Secretariat for Economic Affairs (SECO) is the Swiss authority responsible for export control. An authorization from SECO is generally required for the export of dual-use goods.

3. Export Control Lists:
SECO publishes export control lists that specify goods and technologies for which special export permits are required. Companies should consult these lists to determine whether their goods fall under the control regulations.

4. End-Use Certificates:
For certain goods, an end-use certificate may be required from the exporter. This is a declaration from the ultimate consumer or end-user stating that the goods will not be used for illegal or undesirable purposes.

5. Trade Agreements and Embargoes:
Companies should also ensure that the planned export does not violate international trade agreements or sanctions in which Switzerland is involved.

6. Additional Permits for Certain Countries:
For the export of sensitive goods to certain countries, additional permits may be required, especially if these countries are subject to international sanctions.

7. Consultation with SECO:
SECO offers consultation services for companies with questions regarding export controls. It is advisable to contact SECO early on to ensure that all necessary steps are taken.

It’s important to note that the requirements and authorization procedures can vary depending on the type of goods and their intended uses. Therefore, companies should familiarize themselves with the specific export control regulations early on and ensure they obtain the necessary permits to avoid legal issues.

The application of rules of origin is crucial to benefit from the customs advantages of a free trade agreement. Rules of origin determine under what conditions a good is considered an originating product of a specific country and thus qualifies for the customs preferences set out in the free trade agreement. In Switzerland, the rules of origin are subject to the provisions of the respective free trade agreements that the country has concluded with other partners. Here are the basic steps for applying rules of origin:

1. Correct Classification of Goods:
Correct classification of goods according to customs tariffs is important because rules of origin are often tailored to specific product groups. The exact customs tariff number determines which rules of origin are to be applied.

2. Correct Classification of Goods:
Correct classification of goods according to customs tariffs is important because rules of origin are often tailored to specific product groups. The exact customs tariff number determines which rules of origin are to be applied.

3. Verification of Origin Criteria:
Verify the specific origin criteria of the free trade agreement to ensure that your goods meet the required conditions. This may include production processes, percentages for local content, or other factors.

4. Creating Proof of Origin:
To benefit from customs preferences, proof of origin must be created. This can take the form of a certificate of origin or other documents demonstrating compliance with the rules of origin.

5. Customs Registration:
In some cases, it is necessary to register with customs to be treated as a preferential importer or exporter and to claim customs preferences.

6. Maintenance of Records:
Companies should keep accurate records of the rules of origin and all relevant documents to be able to provide proof of origin if required.

7. Internal Training and Processes:
Implement internal training and processes to ensure that all involved parties within the company understand the rules of origin and can apply them correctly.

8. Consultation with Experts:
In cases of uncertainty or complex situations, it can be helpful to consult experts, such as customs brokers or consultants, to ensure that the requirements are met.

It is important to emphasize that the exact rules of origin can vary depending on the free trade agreement. Therefore, it is crucial to understand the specific regulations of the respective agreement and to ensure that all requirements are met in order to claim customs preferences.

The preferential origin of goods must be proven by appropriate documents to benefit from the customs preferences of a free trade agreement. In Switzerland, this proof is subject to the provisions of the respective free trade agreements that the country has concluded with its trading partners. Here are typical methods for proving the preferential origin of goods:

1. Certificate of Origin:
A Certificate of Origin is a document issued by the exporter confirming that the exported goods comply with the rules of origin of the free trade agreement. It contains details about the goods, their origin, and the applied rules of origin. The certificate is usually certified by the customs authorities of the exporting country or by an authorized body.

2. Supplier Declaration or Origin Declaration:
The exporter can obtain a declaration from the supplier confirming that the supplied materials comply with the rules of origin. This declaration, also known as an origin declaration or supplier declaration, is often used to support the certificate of origin.

3. Customs Registration:
In some cases, it may be necessary to register with customs to be treated as a preferential importer or exporter. This registration can serve as proof of preferential origin.

4. Statistical Value Proofs:
Certain free trade agreements also accept statistical value proofs as evidence of preferential origin. These include information on the manufacture of the goods and can serve as support for the certificate of origin.

5. Exporter’s Own Documentation:
The exporter can present internal documentation proving the preferential origin of the goods. This may include production records, invoices, contracts, and other relevant documents.

6. Origin Query:
The importer can submit an origin query to the customs authorities of the importing country to confirm that the exported goods comply with the rules of origin. This request is often supported by the certificate of origin.

It’s important to emphasize that the exact requirements for proving preferential origin can vary depending on the free trade agreement. Therefore, it is crucial to understand the specific regulations of the respective agreement and to ensure that all necessary documents and proofs are properly prepared.

In Switzerland, import turnover tax is referred to as Value Added Tax (VAT). The handling of VAT on imports generally occurs as follows:

1. Customs Declaration and Import Duty:
When importing goods into Switzerland, they must be declared to the customs authorities. The customs value of the goods is determined, and import duties may apply.

2. VAT Calculation:
VAT is applied to the customs value of the goods as well as to any import duties incurred. The standard VAT rate in Switzerland is generally 8.1%, but there is also a reduced rate of 2.6% for certain goods and services.

3. VAT Payment:
VAT generally has to be paid directly when goods are imported. This can be done at customs or via an electronic procedure. Payment can be made in cash or via electronic payment methods.

4. Possibility of Refund:
Under certain conditions, it’s possible to reclaim part or all of the VAT paid. This may be the case, for instance, if the imported goods are used for business purposes and the importer is entitled to input tax deduction.

5. Input Tax Deduction for Companies:
Companies in Switzerland can claim the VAT paid on imported goods as input tax. This is done through the input tax deduction process, where the VAT paid is deducted from the VAT owed.

6. Electronic Customs Clearance:
Switzerland has an electronic customs clearance system that facilitates the efficient processing of imports. Companies can submit electronic declarations and payments.

7. Proof of Payment and Accounting:
Receipts proving the payment of VAT should be carefully kept. This is important for accounting purposes and potential refund applications.

It’s important to note that the exact procedures and conditions can vary depending on the specific circumstances, the type of goods, and the regulations of the Swiss customs authorities. Therefore, companies should familiarize themselves with the current customs and tax regulations before importing and, if necessary, consult experts or advisors to ensure smooth processing and to take advantage of all relevant benefits.

Preparing for potential customs audits is crucial to ensure that companies correctly comply with applicable customs regulations and procedures. In Switzerland, customs audits can be carried out both randomly and due to specific triggers. Here are some steps companies can take to prepare for potential customs audits:

1. Knowledge of Customs Regulations:
Companies should thoroughly inform themselves about the current customs regulations in Switzerland. This includes customs tariffs, rules of origin, import prohibitions and restrictions, as well as other relevant provisions.

Complete and Accurate Customs Declarations:
When importing and exporting goods, companies should ensure that all customs declarations are completed fully and accurately. Errors in declarations can lead to problems during a customs audit.

3. Retain Documentation:
Companies should carefully retain all relevant documents, including commercial invoices, bills of lading, certificates of origin, and other customs-related documents. These documents serve as proof of proper customs clearance.

4. Utilize Electronic Customs Clearance:
In Switzerland, electronic customs clearance systems are available. Using these systems can not only speed up the customs process but also help maintain accurate records for audits.

5. Implement a Compliance Program:
Companies can implement internal compliance programs to ensure that all employees involved in customs processes understand and adhere to the applicable regulations.

6. Regular Training for Employees:
Training is important to ensure that employees are informed about current developments in customs law and understand the requirements. This applies particularly to employees directly involved in import and export processes.

7. Collaboration with Customs Agents:
Collaborating with experienced customs agents or freight forwarders can help companies ensure that their customs clearances comply with regulations. These professionals can also assist in preparing for customs audits.

8. Utilize Self-Assessment Procedures:
In Switzerland, the self-assessment procedure is an option, allowing companies to create their own customs declarations. However, this requires a corresponding authorization.

9. Conducting Internal Audits:
Companies can conduct internal audits to ensure their customs processes comply with regulations. This allows for proactive identification and resolution of potential issues.

10. Monitor Current Developments:
Customs regulations can change. Companies should therefore stay up to date and adapt their processes as needed to ensure compliance.

Adhering to these steps can help ensure that companies are well-prepared for possible customs audits and that the audits proceed smoothly.