Switzerland Eliminates All Tariffs on All Industrial Goods

Akin Gump Strauss Hauer & Feld LLP

As of 1 January 2024, imports of industrial goods into Switzerland are exempt from customs duties. Together with other tariff simplification measures, this is expected to result in yearly customs savings for importers of over CH 540 million and to reduce costs associated with customs clearance by around 20%.

The elimination of customs duties applies to imports of any origin. Industrial goods are classified in chapters 25-97 of Swiss customs tariff, and include capital goods, raw materials, semi-finished products, machinery, mineral products, chemicals, plastics, vehicles, as well as consumer goods, such as household appliances, electronics, apparel and footwear. Only imports of agricultural products (including live animals and plants, foodstuffs and luxury foods, processed agricultural products, seeds and animal feed), fishery products and certain industrially produced agricultural inputs in chapters 35 and 38 will remain subject to customs duties.

Since duties no longer apply to industrial goods regardless of their origin, importers will no longer be required to submit a preferential proof of origin for these products when Switzerland is the final destination of the goods or when the goods will be re-exported (unaltered or after processing) without preferential tariff treatment. A preferential proof of origin will still be required where cumulation of origin will be applied to goods re-exported from Switzerland after processing as goods with Swiss preferential origin. In addition, proof of origin is required for imports of goods intended for re-export unaltered to free-trade partner countries with which cumulation of origin is possible (so-called “through-trade”), as well as for imports of goods intended for re-export unaltered and for which a preferential proof of origin is to serve as a basis for a certificate of non-preferential origin.

Switzerland has also made changes to simplify its tariff structure for industrial goods by reducing the number of tariff lines from the current 6172 to 4592.

These trade facilitation measures seek to reduce prices for the consumer, thus contributing to the fight against inflation, and to increase the productivity and competitiveness of Swiss companies. The move also creates attractive opportunities for foreign exporters seeking to supply the Swiss market.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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