WORLD TRADE
ORGANIZATIONG/STR/N/9/CHE
21 March 2003
(03-1666)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Updating Notification Pursuant to Article XVII:4(a)
of the GATT 1994 and Paragraph 1 of the Understanding on
the Interpretation of Article XVII
SWITZERLAND
The following communication, dated 19 March 2003, has been received from the Permanent
Mission of Switzerland.
_______________
1. Enumeration of state trading enterprises
Swiss Alcohol Board;   Federal Department of Finance.
2. Reason and purpose for introducing and ma intaining state trading enterprises
The Alcohol Legislation, which is  concerned with the manufacture, rectification and import of
spirits and ethanol, was established in Switzerland for public health reasons.
It is based on Article 105 of the Federal Constitution, which gives the Federation the sole right
to legislate in this field. Pursuant to that consti tutional basis, the Federal Assembly promulgated the
Federal Law on Alcohol of 21 June 1932.  This le gislation aims at reducing the production and
consumption of spirits.
The Swiss Alcohol Board has responsibility for implementing that law.
3. Function of the state trading enterprises
The private sector is allowed to import ethanol and spirits containing not more than 80 per cent
by volume without restriction and without any permit.   The taxes, fixed by the Federal Council, have to
be paid on imported goods as well as on the domestic production.
For control reasons, the Swiss Confederation, th rough alcosuisse, a profit centre of the Alcohol
Board, is entitled to import ethanol whose alcohol content exceeds 80 per cent by volume.  However,
imports by the private sector are possible subject  to prior authorization by the Alcohol Board.
Inside the country, ethanol and spirits are not pr oduced by the Alcohol Board itself, but by the
private sector which, for control reasons, has been granted a concession (industrial and professional
producers, farmers, small producers).G/STR/N/9/CHE
Page 2
Industrial distilleries and spirits producers are allowed to market their products directly subject
to payment of the taxes.  This trade is subject to authorization.
Ethanol is bought and sold by alcosuisse at the market price of the various qualities imported or
produced in Switzerland.  The prices for ethanol sold  by alcosuisse are fixed by the Federal Council.
Ethanol intended for consumption purposes is subject to a tax.
4. Imports, exports and domestic production
See Annex.
5. Reasons why no foreign trade has taken place in the products concerned
As the Alcohol Legislation is established for public health reasons, the commercial activities
of the Alcohol Board are concentrated on the domestic market.  Therefore the quantity exported by
the Alcohol Board is not important (see Table II, exports).
6. Additional information
Nil of note.G/STR/N/9/CHE
Page 3ANNEX
TABLE I
Swiss Alcohol Board
STATISTICAL INFORMATION,  IMPORTS, Year 2001-20021
Description of
product(s)
(including HS
number(s))Total quantity
importedQuantity imported by
state trading
enterpriseAverage import price Average
representative
domestic sales priceMark-up National production
1234567
Undenatured ethyl
alcohol of an
alcoholic strength by
volume of 80%
volume or higher
2207.1000245'227 hl
251'797 hl245'227 hl
251'797 hl49.65 USD / hl
52.79 USD / hl115.92 USD / hl
126.63 USD / hl108’238 hl
112'335 hl
(not produced by the
Swiss Alcohol
Board)
Ethyl alcohol,
denatured or intended
for denaturing
2207.200038'090 hl
18'979 hl38'090 hl
16'338 hl46.88 USD /  hl
66.25 USD / hl63.62 USD / hl
72.49 USD / hl0
0
                                                     
1 1st figure: year 2001; 2nd figure: year 2002G/STR/N/9/CHE
Page 4 TABLE II
Swiss Alcohol Board
STATISTICAL INFORMATION, EXPORTS, Year 2001 – 2002
Description of
product(s)
(including HS
number(s))Total quantity
exportedQuantity exported by
state trading
enterpriseAverage procurement
priceAverage
representative
Domestic sales priceAverage export price National production
1234567
Undenatured ethyl
alcohol of an
alcoholic strength by
volume of 80%
volume or higher
2207.1000207 hl
237 hl-
-49.65 USD / hl
52.79 USD / hl115.92 USD / hl
126.63 USD / hl1177.88 USD / hl
1166.81 USD / hl108'238 hl
112’335 hl
Ethyl alcohol,
denatured or intended
for denaturing
2207.2000329 hl
5179 hl10.5 hl
13 hl46.88 USD / hl
66.25 USD /  hl63.62 USD / hl
72.49 USD / hl192.84 USD / hl
186.85 USD / hl-
-G/STR/N/9/CHE
Page 5TABLE III
Swiss Alcohol Board
STATISTICAL INFORMATION, DOME STIC ACTIVITIES, Year 2001 – 2002
Description of product(s)
(including HS number(s))Domestic purchases by
state trading enterpriseNational production Domestic sales by
state trading enterpriseNational consumption
12345
Undenatured ethyl alcohol of
an alcoholic strength by
volume of 80% volume or
higher
2207.1000108’238 hl
112'335 hl108’238 hl
112'335 hl10’940 hl
11'515 hl10’940 hl
11'515 hl
Ethyl alcohol, denatured or
intended for denaturing
(imported by the Alcohol
Board)
2207.20000
00
0378’748 hl
389’574 hl378’748 hl
389’574 hl
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