WORLD TRADE
ORGANIZATIONG/STR/N/6/CHE
G/STR/N/7/CHE
27 June 2001
(01-3210)
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 26 June 2001, 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 this area since Switzer land’s last notification from 1999 up to the end of 2001
and includes the statistical information for 2000.
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.
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.G/STR/N/6/CHE
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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 professional
producers, 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.
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.G/STR/N/6/CHE
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5. Reasons why no foreign trade has taken place in the products concerned
5.1 Alcohol
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
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/6/CHE
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Page 4ANNEX
TABLE I
Swiss Alcohol Board
Federal Office of Agriculture
STATISTICAL INFORMATION, IMPORTS, Year 2000
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
2207.10001,862.150 hl 1,862.150 hl 108.90 USD / hl 112.73 USD / hl 15.732 hl
(not produced by the
Swiss Alcohol
Board)
Ethyl alcohol,
denatured or intended
for denaturing
2207.2000219,559.650 hl 219,559.650 hl 44.02 USD / hl 65.29 USD / hl 85.375 hl
(not produced by the
Swiss Alcohol
Board)
Bread flour
1101.0029311,147 t 311,147 t 45.94 CHF 65 CHF 393,624 t
Durum wheat meal
1103.1119138,677 t 138,677 t 119.51 CHF 125 CHF 80,410 tG/STR/N/4/CHE
G/STR/N/5/CHE
Page 5TABLE II
Swiss Alcohol Board
Federal Office of Agriculture
STATISTICAL INFORMATION, EXPORTS, Year 2000
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
2207.1000203.490 hl - 108.90 USD / hl 112.73 USD / hl - 15.732 hl
Ethyl alcohol,
denatured or intended
for denaturing
2207.2000857.620 hl 34.130 hl 44.02 USD / hl 65.29 USD / hl 90.31 USD / hl 85.375 hl
Bread flour
1101.002938,556 t 38,556 t 139.68 CHF 139.68 CHF 139.68 CHF 393,624 t
Durum wheat meal
1103.1119104,312 t 104,312 t 236.32 CHF 236.32 CHF 236.32 CHF 80,410 tG/STR/N/6/CHE
G/STR/N/7/CHE
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TABLE III
Swiss Alcohol Board
Federal Office of Agriculture
STATISTICAL INFORMATION, DO MESTIC ACTIVITIES, Year 2000
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
2207.10001,862.150 hl 15.732 hl 1,862.150 hl  1,674.392 hl
Ethyl alcohol, denatured or
intended for denaturing
(imported by the Alcohol
Board)
2207.2000219,559.650 hl 85.375 hl 219,525.520 hl 218,787.405 hl
Bread flour
1101.0029704,771 t 393,624 t 704,771 t 666,215 t
Durum wheat meal
1103.1119219,087 t 80,410 t 219,087 t 114,775 t
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