WORLD TRADE
ORGANIZATIONG/STR/N/4/CHE
G/STR/N/5/CHE
13 July 2000
(00-2879)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
New and Full and Updating Notifications 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 10 July 2000, has been received from the Permanent
Mission of Switzerland.
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A. INTRODUCTORY REMARKS
This notification concerns products which are the subject of state tradin g within the meaning of
Article XVII:4(a) of the GATT 1994 or of paragra ph 1 of the Understanding on the Interpretation of
Article XVII.  It covers all changes in this area since Switzerland’s last full notification from 1995 up to
the end of 1999.
The state trading enterprise ”BUTYRA” is in  liquidation. Since the introduction of the new
agriculture policy in 1999, there is no need for such an organization.  No new succeeding enterprise has
therefore been established.
Thus, the following products are covered: alcohol and bread flour.
B. NOTIFICATION
1. Enumeration of state trading enterprises
1.1 Swiss Alcohol Boar d;  Federal Department of Finance.
1.2 Federal Office of Agriculture;  Federal Department of the Public Economy.
2. Reason and purpose for introducing and ma intaining state trading enterprises
The state trading enterprises were established a nd are maintained in furtherance of the general
objectives of Swiss policy with respect to public hea lth, agriculture and supplies.  They engage in the
import, marketing and, if necessary, production of the products concerned.
2.1 Alcohol
The Alcohol Legislation, which is  concerned with the manufacture, rectification and import of
spirits and ethanol, was established in Switzerland for public health reasons.G/STR/N/4/CHE
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It is based on Article 105 (formerly Article 32 bis) of the Federal Constitution, which gives the
Federation the sole right to legislate in this field. Pursuant to that constitutional basis, the Federal
Assembly promulgated the Federal Law on Alcohol of  21 June 1932.  This legislation aims at reducing
the production and consumption of spirits.
The Swiss Alcohol Board has responsibility for implementing that law.
2.2 Bread flour
The exclusive right of the Confederation to im port bread flour was instituted to ensure the
security of its supply, and to protect the domestic m illing industry.  It is based on Article 23, first indent
of the Federal Law of 20 March 1959 on the national wh eat supply.  The Federal Office of Agriculture
has responsibility for its implementation.
3. Function of the state trading enterprises
3.1 Alcohol
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 professionalproducers, farmers, small producers).
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.
3.2 Bread flour
The Confederation has the exclusive right to im port bread flour. According to Article 23 of the
Law on the national wheat supply (W heat Law), that supply may be used only in troubled times, when
the supply is jeopardized, or in case of war.
The Federal Office of Agriculture automatically  grants import permits upon payment of custom
duties which are fixed by customs legislation.  Imports  are not restricted at these rates.  Import permits
may be granted at a reduced customs duty rate if the flour is used for technical purposes, for the
production of pasta or for export produc ts.  The conditions for the granting of such permits are set by the
Federal Office of Agriculture.G/STR/N/4/CHE
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Pursuant to Article 35, third indent of the Wheat Law, if domestic bread flour is overpriced, the
Federal Office of Agriculture will ensure the supply of flour at a fair price by importing bread flour, on
its own account, or by authorizing the importation of bread flour at a reduced rate of duty.
4. Imports, exports and domestic production
See Annex.
5. Reasons why no foreign trade has taken place in the products concerned
None.
6. Additional information
6.1 Bread flour
The Wheat Law will be abolished as per 30 June 2001.  With the introduction of a new wheat policy
as from the campaign year (1 July 01 – 30 June 02), the state monopoly will be abolished too.G/STR/N/4/CHE
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Page 4ANNEX
Tariff heading No. Description of products Imports Exports Domestic production
1,000 l 1,000 Fr. 1,000 l 1,000 Fr. 1,000 l /100%
2207.1000
2207.2000
2208.9010Alcohol
Undenatured ethyl alcohol of an
alcoholic strength by volume of 80%volume or higher: 1995
1996
1997
1998
1999
Ethyl alcohol, denatured or intended
for denaturing (imported by the
Alcohol Board) 1995
1996
19971998
1999
Undenatured ethyl alcohol of an
alcoholic strength by volume of less
than 80% volume:  - Other
19951996
1997
1998
199945.158
61.545
192.108
321.969
222.362
12,799.710
14,537.368
12,348.620
25,346.91930,321.443
0.009
0.230
1.0710.085
1.525294.625
355.514
435.025
552.116
462.022
12,271.060
15,482.457
14,357.623
23,170.52122,428.464
0.678
7.627
3.3412.996
22.1119.135
7.816
23.358
10.997
18.757
15.412
70.034
34.441
16.80317.052
0.010
0.001
0.0590.121
0.042139.564
131.175
385.890
226.598
789.923
371.092
513.422
647.158
467.056366.501
0.295
0.100
1.5222.025
0.729Production of pip-fruit
brandies and specialities
1994/95 3,271
1995/96 3,139
1996/97 3,317
1997/98 2,485
1998/99 3,854
1994/95 10,500
1995/96 10,561
1996/97 11,310
1997/98 11,0731998/99 11,029G/STR/N/4/CHE
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not defined. Tariff
heading No.Description of products Imports Impor ts Exports Exports Domestic production
Tonnes 1.000CHF Tonnes 1.000CHF
1101.0029 Bread flour                            1997
                                              1998
                                              1999124
139
73125
134
9668
13
16151
20
31Baking flour
1997: 373’900t
1998: 387’900t
1999: 390’200t
1103.1119 Durum wheat meal               1997
                                              1998
                                              199919
18
4322
15
4658
92
92143
215
216Durum wheat meal
1997: 75’700t
1998: 77’700t
1999: 81’750t
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