WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 40 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. There have been no major changes in th e common trade regime of Switzerland and 
Liechtenstein since their previous TPR in 2004.  Regulatory harmonization with the European 
Communities (EC) has continued. 
2. Under the 1923 Customs Union Treaty, as amende d up to 1995, the Swiss tariff generally 
applies to imports to Switzerland and Liechtenste in.  The applied MFN tariff still comprises only 
specific rates, with relatively high protection for agricultural products .  Overall, the simple average 
applied MFN tariff rate is estimated at  8.1%, down from 9.3% in 2004, with ad valorem  equivalent 
(AVE) rates ranging up to 1,468.7%, and 85.5% of all the lines carrying rates ranging up to 10% 
(included).  Some 18.4% of all tariff lines carry th e zero rate (20.2% of WTO agricultural tariff lines 
and 17.5% of non-agricultural lines).   
3. There is high dispersion of the tariff rates, a consequence of highly dispersed AVEs, very 
high tariffs on agricultural products and genera lly low rates on non-agricultural goods.  Seasonal 
tariffs apply to some 95 product categories and are levied mostly on fruits and vegetables, most of 
which are also subject to tariff quotas;  these apply to 3.5% of all tariff lines and can be modified, 
mostly as a result of domestic shortages.  With th e exception of gas, petroleum, and related products, 
Switzerland and Liechtenstein bound their tariffs on a ll products;  the bound tariffs are specific on 
agricultural products and alternate on the other goods. 
4. Switzerland and Liechtenstein continue to a pply automatic and non-automatic licences.  
Import licensing is maintained mainly to manage tariff quotas and compulsory reserve stock 
requirements, and on phytosanitary and environmen tal grounds.  Under their SPS regime, Switzerland 
and Liechtenstein allow imports only from establishm ents certified by the EC as complying with its 
requirements.  Moreover, they collect relatively hi gh levies on imports of all products subject to 
compulsory reserve stock requirements, although th ey bound other duties and charges on imports at 
zero.  Switzerland and Liechtenstein have ne ver applied any anti-dumping or countervailing 
measures;  during the period under review, they  have not imposed any safeguard measures.  
5. Switzerland continues to subsidize exports of ag ricultural products (including dairy products, 
cattle and horses, fruit, potatoes, and processed pro ducts).  The subsidies generally consist of price 
reductions, or direct contributions to subsidize inputs, mainly those used by agri-industries under the Price Compensation Mechanism.  In addition, the threshold price system on imports of selected 
agricultural products provides for tariff adjust ments to maintain stable domestic prices. 
6. In Switzerland, incentives are granted both at th e federal and sub-federa l levels.  The main 
types of federal support consist of financial tran sfers and tax exemptions .  Some cantons offer 
incentives to domestic as well as foreign investors, in particular in rural areas.  Limited competition is 
still a main reason for the high prices on the Swiss ma rket, although the 2003 reform of the Cartels 
Law strengthened the Swiss competition regime.  Liechtenstein does not have national competition 
legislation;  competition issues are dealt with mainly under the EEA and EFTA.   
7. Swiss legislation on intellectual property (IP ) has undergone several revisions since 2004 
mainly to keep pace with technological developmen ts and to harmonize it with EC legislation and 
other treaties.  Liechtenstein continues to use the Sw iss patent legislation, but has its own legislation 
on copyright, trade marks, and industrial designs. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 41 
 
 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures  
8. Trading activities in Switzerland and Liechtenstein continue in general to be open to nationals 
and foreigners with a valid residence and work perm it.  Since the last Review in 2004, their customs 
laws have been amended to ensure compatibility w ith the EC Community Customs Code and to adapt 
them to some EC standards.  According to the au thorities, this has facilitated customs procedures and 
the circulation of merchandise at the borders , and hence improved Sw iss and Liechtenstein 
competitiveness.1 
9. A customs declaration can be made, prior to the arrival of the merchandise, electronically or 
in written form;  for " trafic touristique ", customs declarations may be made verbally.2  Most customs 
procedures are done electronically.  An electronic cu stoms declaration is obligatory for imports of, 
inter alia , agricultural goods subject to tariff quotas (with some exceptions)3, and for certain alcoholic 
beverages that are to be put in a bonded warehouse.  However, a paper customs declaration is possible 
when an electronic one is not prescribed or if the importer has not been granted permission to file an 
electronic customs declaration.4   
10. The Customs Administration reserves the right to verify incoming merchandise and its 
packaging material, and to control the state of the means of transport, to ensure road safety.5  A l l  
imported goods must be presented to the appropriate customs office and declared for clearance.  Imports must be declared within one day (at latest ) of arrival in the country, no matter the means of 
transport.  The importer may examine goods befo re submitting them for clearance.  For customs 
purposes, an ordinary commercial invoice is consid ered sufficient documentation.  The invoice should 
contain:  a description of the products and packagin g, gross and net weight of each package, quantity 
(in metric terms), country of origin, and c.i.f.  value to the Swiss/Liechtenstein border.   
11. A certificate of origin may be required for prefer ential tariffs, health, or quality control reasons.  
For instance, special health certificates, stamped by the competent authorities of the country of origin, 
are required for imports of horses, bovine animals, farm animals, certain domestic animals, bees and 
eggs for hatching, meat, game, seafood, beeswax, and comb honey from non-EC member countries. 
Official plant health certificates from the country of  origin must accompany shipments of vegetables, 
fresh fruits, and wild plants. 
12. Goods may be in transit or under other customs regimes, i.e. customs bonded warehouses, 
temporary admission, and inward-processing regime (section (iv));  the customs declaration must 
indicate the relevant regime.  Merchandise that ente red Switzerland or Liechtenstein under one regime 
may be moved to another.  Transit goods must be declared for clearance at the point-of-entry and be 
covered by a national or interna tional transit document (e.g. TIR ca rnet and common transit procedure 
T1/T2).  These goods must be re-exported or presented intact to Customs to put them under a different 
customs regime within the designated time limit.  No  transit duties or fees are levied.  A transit permit 
is required for narcotic drugs, armaments, nuclear fuels, and nuclear fuel residues. 
                                                     
 
1 According to the authorities, the amended laws follow the structure of the EC Code, use the Code's 
terminology, and even adopted parts of the Code.  
2 RS 631.013. 
3 Refer to RS 631.013, for the list of the exceptions. 
4 Chapter 2, section 2 of the federal customs administration ordinance on customs (RS 631.013) 
indicates when importers are not authorized to  make an electronic customs declaration. 
5 Articles 28 and 29 of RS 631.0. WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 42 
 
 
13. Goods entering Switzerland or Liechtenstein on a temporary basis may be put into a bonded 
warehouse without customs cl earance or the payment of import duties or VAT.   
14. Under the MCSM, the Swiss Federal Customs Administration clears imports to Liechtenstein, 
collects duties, and informs the Liechtenste in Office of Customs Affairs (Box II.1).6  
(ii) Customs valuation and rules of origin 
(a) Customs valuation 
15. Switzerland and Liechtenstein have no specific le gislation on customs valuation, as they levy 
only specific customs duties (by gross weight in mo st cases).  Nonetheless, they do need to assess 
customs value for internal-taxation purposes since th e value-added tax and the motor vehicle tax are 
both ad valorem  (section (v)).  
16. Goods imported into Switzerland are cleared on the basis of their gross weight (if there is no 
other basis determined, e.g. litres, pieces).  The du tiable (gross) weight comprises the actual weight of 
the goods, the weight of any supports and immediat e packing materials, plus the weight of the 
packing material for protection during transport.7  However, unpacked goods and those whose 
package is deemed not to provide "sufficient" pr otection against damage during transportation, are 
liable to an "additional tare", a supplement equal to  the difference between the gross and net weight, 
and expressed as a percentage of the net weight.  The "additional tare" is stipulated by HS tariff line in 
the Ordinance, and varies from 100% for goods whose net weight is almost nil (petroleum gases and 
other gaseous hydrocarbons) to 5%.8  Goods may also be cleared on the basis of net weight if the 
importer so requests:  in this case, if there is no set "additional tare" rate for the specific item, the 
statutory rate of 10% applies.9   
(b) Rules of origin 
17. Switzerland and Liechtenstein apply both non-pr eferential and preferential rules of origin.  
They apply the same non-preferential rules of origin , which do not seem to have  changed substantially 
since 2004, and continue to be regulated by the Or dinance on attestation of the non-preferential origin 
of goods.10  Under these rules, products are considered as originating from a country if they are either 
wholly obtained or "sufficiently transformed" in that country (i.e. non-originating components must 
not exceed 50% of the f.o.b. export value, or the tran sformation must lead to a change in the HS tariff 
heading at the four-digit level).  In general, "m inor" transformations (e.g. packaging, blending, and 
mixing) do not confer origin. 
18. The preferential rules of origin are defined in separate ordinance and in the relevant 
preferential agreements.11  A valid certificate of origin must accompany the customs declaration for 
goods eligible for preferential treatme nt, and the preference must be requ ested at the time of import.  
If goods eligible for preferences are transporte d through a third country, the conditions of 
transportation need to be stipulated. 
                                                      
6 For a detailed description of the Liechtenstein Market Control and Surveillance Mechanism, see 
WTO (2004).  
7 Article 2 of RS 632.10 and Article 1 of RS. 632.13. 
8 For a full list of products subject to "additional tare" and its rate, see the Annex to RS. 632.13.  
9 Article 5 of RS. 632.13.   
10 RS 946.31.   
11 RS 946.39.   Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 43 
 
 
19. In general, the preferential rules of origin re quire minimum local content of 50% or 70% of 
value added.  For certain HS chapters, a change of  tariff heading at the four-digit level or certain 
working or processing criteria must be met in additi on to or instead of the main origin rules.  
However, specific rules apply to many products including agricultural goods, chemicals, textiles and 
clothing, metals, and machinery;  the products a ffected vary according to the agreement.  Upon 
written request, the Customs Administration will provide information on the rules of origin that apply in each case.
12  The preferential rules of origin enable b ilateral cumulation of origin between parties 
and allow a tolerance level of 5% of the ex-factory price of products. 
20. In 2005, EFTA rules of origin were amended in order to adapt them to the                          
pan-Euro-Mediterranean cumulation model (Chapter II(4)(ii)(a)).13  This system is based on a network 
of preferential agreements, and provides for identical rules of origin and diagonal cumulation.  Parties 
forming the zone are the EC, the EFTA states, Turk ey, and signatories of the Barcelona Declaration, 
i.e. Algeria, Egypt, the Faeroe Islands, Israel, Jordan, Lebanon, Morocco, the Palestinian Authority, 
Syria, and Tunisia.14 
21. The preferential rules of origin under the Swi ss-EC Free Trade Agreement have not changed 
since the last TPR of Switzerland.  They are simila r to other preferential rules of origin, with three 
main categories:  percentage of original c ontent, sufficient transformation, and processing 
requirements.  The pan-European cumulation, intro duced in 1997, is still in place, and bilateral, 
diagonal, and full cumulation continue to be applied. 
22. Imports into Liechtenstein of EEA origin  products from EEA members and exports from 
Liechtenstein of EEA origin products to EEA members are governed by Protocol 4 of the EEA 
Treaty.  However, exports by Liechtenstein of go ods originating in Switzerland are subject to the 
provisions of the 1972 Swiss-EC Free Trade Agreem ent (SEFTA).  The origin regimes in the SEFTA 
and the EEA Agreement are almost identical.  The on ly fundamental difference is the full cumulation, 
which can be used within the EEA. 
23. Under the GSP scheme, a primary product orig inates from the preference-receiving country 
where it is "wholly obtained".  Manufactured produc ts must be sufficiently worked or processed to 
confer origin.  This generally requires a change in  tariff classification (at the HS-four digit level), as 
well as transformation that goes beyond a set of listed activities considered as minimal operations.15  
In addition, since 1 January 1996, the origin rules governing imports un der the GSP scheme have 
allowed for cumulation of local materials (mater ials from the customs union) with inputs from 
beneficiary countries.  In addition, under a general "tol erance rule", preferential status is maintained if 
the share of third-country components – otherwise not accep ted – does not exceed 5% of the             
ex-factory price of the product.  Cumulation is possible among members of regional economic 
groupings.  The EC, Norway, and Switzerland and Liech tenstein have agreed to mutually recognize 
each other's GSP rules of origin for imports of products under HS Chapters 25-97.  Therefore, the 
rules of origin governing imports under these GSP schemes are being revised. 
                                                      
12 Article 20 of RS 631.0 ( Renseignements en matière de tarif et d'origine ). 
13 In 2005, the EFTA Council adopted a decision amending Annex A to the EFTA Convention on 
Rules of Origin. 
14 WTO documents WT/REG85/R/B/4 and G/L/805, 23 November 2006.  
15 Department of Foreign Trad e online information, "Rules of origin".  Viewed at:  
http://www.dft.moc.go.th/the_files/$$12 /level3/Gsp4.html [21 May 2008]. WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 44 
 
 
(iii) Tariffs 
(a) General features 
24. Under the 1923 Customs Union Treaty, as amende d up to 1995, the Swiss tariff generally 
applies to imports into Switzerland and Liechte nstein.  The only exceptions are goods carrying 
different tariffs under the 1972 free-trade agreem ent between Switzerland and the EC on the one 
hand, and the EEA agreement on the other (Box II.1).  There have been no major changes in the Swiss 
tariff since 2004.  The tariff continues to comprise only specific rates and to afford higher protection to agricultural products vis-à-vis  non-agricultural goods.  Imports are taxed according to the Federal 
Law on customs tariffs, generally on the basis of gross weight.  The gross dutiable weight includes the 
actual weight of the goods and their packaging, including the weight of any fixing material and 
supports on which the goods are placed.  The gross weight is always rounded up.
16 
25. Under the Federal Law on customs tariffs, the Federal Council may modify tariffs for the 
customs union through an ordinance;  it ma y increase tariffs when deemed necessary.17  T h e  
modifications are temporary until their approval by the Federal Assembly.  Any tariff increase would 
be made only after a case-by-case evaluation, whic h takes into account the needs of Swiss economy;   
during the period under review , no such measures have been taken. 
26. Tariff reductions/exemptions may also be stip ulated in cases of national emergency.  In 
addition, if exceptional measures are taken in a foreign country with harmful effect on the 
Swiss/Liechtenstein economy, the Federal Council may modify tariffs, eliminate tariff exemptions or 
take other measures for as long as the circumstances require.18  Since 2005, the Federal Council has 
not applied this provision.  Furthermore, under the "threshold" price system, customs duties on 
selected agricultural products are reviewed quarterly and, if necessary, adjusted  to ensure the stability 
of their domestic prices (section (4)(iii) and Chapter IV(2)(ii)). 
27. Seasonal tariffs apply to some 95 products and are levied mostly on fruits and vegetables 
produced domestically, most of which are also subj ect to tariff quotas.  Import duties on agricultural 
goods are modified on the basis of domestic suppl y and export opportunities for similar products.19 
28. Tariff quotas apply to agricultural products (3.5% of all tariff lines, i.e. 287 tariff lines at the 
HS eight-digit level), and cover, inter alia , live animals, eggs, bovine semen, cut flowers, potatoes, 
fresh and frozen vegetables, fresh fruits, wine, and certain cereals.  Tariff quotas may be modified, 
mostly as a result of domestic shortages.  Thus , imports above the specified quotas are in some 
instances allowed at the in-quota tariff rates (Chapter  IV(2)).  The process of quota allocation varies 
according to product (section (vi)(b)).  All of the preferential agreements concluded by Switzerland 
and Liechtenstein also include preferential tariff  quotas (Table III.1).  The quotas are part of the WTO 
MFN quotas and there is no preferential allocation syst em for them.  An electronic application system 
("e-quota") ensures that, in case of exhaustion, no a dditional attribution under the preferential quota is 
allowed. 
                                                      
16 RS 632.10.   
17 RS 632.10.   
18 RS 632.10.   
19 RS 910.1.   Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 45 
 
 
Table III.1 
Tariff quotas, by trade regime, 2008 
Trade regime No. of tariff lines  
MFN  287 
Preferences to the EC 22 
EFTA (trade with Iceland and Norway)  23 
Free-trade agreement with:     
Chile 152 
Croatia 53 
Egypt 77 
Faeroe Islands 2 
Israel 40 
Jordan 73 
Korea (Rep. of) 165 
Lebanon 89 
Macedonia (FYR)  59 
Mexico 37 
Morocco 88 
Palestinian Authority 30 
Singapore 7 
Tunisia 17 
Turkey 37 
Least-developed countries (LDC) scheme 233 
Generalized System of Preferences (GSP) scheme 162 
Source:   WTO, IDB. 
(b) MFN tariff  
29. The 2008 Swiss and Liechtenstein tariff has 8,099 lines at the HS eight-digit level 
(HS 2007).20  It comprises only specific duties.  The ad valorem  equivalents (AVEs) used in this 
analysis are calculated as the ratio of specific du ties to import unit values, estimated by the ratio of 
import values to import quantities/volumes in 2007 (at the HS eight-digit level).  If no import data 
were available for 2007, 2006 import data were used.  The shortcomings of specific duties include the 
disparate levels of protection afforded to similar go ods:  as the basis of the tariff is (in general) the 
weight of imported goods, its impact tends to be higher on relatively heavy and cheap goods than on 
expensive and light products within the same tariff line.21 
30. The tariff contains ad valorem  equivalents rates ranging from zero to 1,468.7%, with some 
85.5% of all lines carrying rates up to 10% (included)  (Chart III.1).  Duty-free treatment applies to 
18.4% of all tariff lines (20.2% of WTO agricultural lines and 17.5% of non-agricultural lines), including nuts, fruits, tea, some cereals, seeds, coco a, vanilla, live animals, fish and crustaceans, 
animal and vegetable fats , petroleum, certain chemicals, raw silk, wool, cotton and jute, and base 
metals.  Another 42.2% of lines bear non-zero rates of less than 2% ("nuisance rates") (Table III.2).  
The maximum rate (on an AVE basis) of 1,468.7% applies to frozen bovine offal, other than tongue 
and liver (HS 0206.2990). 
                                                     
 
20 There is a discrepancy between the actual number of lines in the tariff (8,099) and the number of 
lines used in the tariff analysis (7,826) due to the abse nce of trade data for the cal culation of AVEs for certain 
tariff lines.  
21 For details on the shortcomings of specific duties, see WTO (2000), Box III.1. WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 46 
 
 
(0.7) (1.6)(4.0)(67.5)
(18.4)
(0.6)(3.7)
01,0002,0003,0004,0005,0006,0007,000
0 <0-10 <10-20 <20-30 <30-40 <40-50 <500102030405060708090100
The fi gures in brackets corres pond to the percenta ge of total lines. The y do not add to 100% as some AVEs could not 
be estimated.
WTO Secretariat calculations, based on data provided by the Swiss authorities.Chart III.1
Breakdown of applied MFN tariff rates, 2008
Number of tariff lines
Note:
Sourc e:Percentage
Number of lines 
Cumulated percentage (right-hand scale)
 
Table III.2 
Structure of MFN tariffs, 2004 and 2008 
(Per cent) 
 2004 2008 U.R. 
1.    Bound tariff lines (% of all tariff lines) 99.0 99.0 n.a. 
2.    Specific tariffs (% of all tariff lines) 100.0 100.0 100.0 
Duty-free tariff lines (% of all tariff lines) 17.7 18.4 14.9 
3.    Tariff quotas (% of all tariff lines) 3.4 3.5 3.5 
4.    Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 5.2 3.3 6.0 
5.    Simple average tariff rate (AVE basis) 9.3 8.1 10.4 
 Agricultural products (WTO definition)a 36.2 29.4 42.2 
 Non-agricultural products (WTO definition)b 2.3 2.0 2.1 
 Agriculture, hunting, forestry and fishing (ISIC 1) 28.7 22.7 33.4 
 Mining and quarrying (ISIC 2) 0.6 0.5 0.5 
 Manufacturing (ISIC 3) 7.7 6.9 8.5 
6    Domestic tariff "spikes" (% of all tariff lines)c 5.9 5.9 7.0 
7.    International tariff "peaks" (% of all tariff lines)d 8.6 7.8 9.9 
8.    Overall standard devia tion of applied rates 42.5 39.2 43.7 
9.  "Nuisance" applied rates (% of all tariff lines)e 39.0 42.2 41.5 
n.a. Not applicable. 
a WTO Agreement on Agriculture definition.  
b Excluding petroleum.  
c Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 5).  
d International tariff peaks are defined as those exceeding 15%.  
e Nuisance rates are those greater than zero, but less than or equal to 2%.  
Source:   WTO Secretariat calculati ons, based on data provided by the Swiss authorities. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 47 
 
 
31. Overall, the simple average applied MFN tariff rate is estimated at 8.1%, down from 9.3% in 
2004 (Table III.2);  the standard deviation is 39.2%, down from 42.5%.  The decrease in the 2008 
AVEs over their 2004 levels, to a large extent, reflects an upward trend in import prices (of 
agricultural products in particular);  this is a ma in feature of specific duti es.  The coefficient of 
variation of 4.8 (4.6 in 2004) depicts high dispersion of the tariff rates (the ad valorem  equivalents);  
the high dispersion is a consequence of specific tari ffs (with highly dispersed AVEs), and of very high 
tariffs of 29.4%, on average, on agricultural products (WTO definition) and generally low rates of 2% 
on non-agricultural products.  Using the ISIC (Revisi on 2) definition, the average tariff is also higher 
for agriculture (22.7%) than for manufacturing (6.9%)  and mining and quarrying (0.5%) (Table III.3).  
Nevertheless, some international tariff peaks also apply to certain non-agricultural products, including 
textiles and clothing items (HS Chapte rs 54, 56, and 63) (Table AIII.1). 
32. In aggregate, the tariff continues to display negative escalation from first-stage goods, with an 
average tariff rate of 14.2% (mainly because of hi gh tariffs on unprocessed agricultural products), to 
semi-finished products with an average rate of 3.6%;  and positive escalation from semi-finished to 
finished goods, with an average rate of 9.1% (Tab le III.3).  At a more disaggregated level of ISIC 
(Revision 2), positive tariff escalation is most pronounced on food products  and beverages, and 
moderate on textiles and apparel,  plastic products, and non-metallic  mineral products.  On wood 
products, the tariff displays negative escalation fro m first-stage goods to semi-finished products, 
positive escalation from semi-finished to finished goods.  On other manuf actured goods, including 
paper and printing material, the tariff also displa ys mixed escalation, but the escalation is positive 
from first-stage to semi-finished goods, and th en negative to finished goods (Chart III.2).22 
Table III.3 
Summary analysis of the applied MFN tariff, 2008  
Applied 2008 rates Analysis No. of 
linesa No. of lines 
used Simple avg. 
tariff (%) Tariff range 
(%) Std-dev 
(%) CV Imports 2007
(US$ million) 
Total 8,085 7,816 8.1 0-1,468.7 39.2 4.8 161,180.2 
By WTO definitionb               
Agriculture 1,993 1,744 29.4 0-1,468.7 79.2 2.7 9,200.2 
Live animals and products thereof 148 134 98.5 0-1,468.7 199.3 2.0 730.3 
Dairy products 57 56 62.5 0.9-268.1 69.2 1.1 379.0 
Coffee and tea, cocoa, sugar, etc. 452 405 20.6 0-263 36.4 1.8 2,407.1 
Cut flowers and plants 74 72 8.8 0-94.9 19.7 2.2 601.1 
Fruit and vegetables 495 463 27.6 0-1256.2 74.8 2.7 1,728.9 
Grains 82 64 18.3 0-209.3 44.3 2.4 264.6 
Oil seeds, fats, oils, and their products 372 244 27.6 0-209.7 41.8 1.5 401.9 
Beverages and spirits 108 107 33.7 0-507.9 79.0 2.3 1,634.8 
Tobacco 15 15 13.4 0- 73.1 19.3 1.4 282.7 
Other agricultural products 190 184 5.9 0-302.4 28.3 4.8 769.9 
Non-agriculture (excl. petroleum) 6,073 6,053 2.0 0-121.6 3.6 1.8 144,761.1 
Fish and fishery products 156 155 0.7 0-43.1 3.8 5.4 599.2 
Mineral products, precious stones, and 
precious metals 370 370 1.4 0-31.7 2.7 1.9 14,362.7 
Metals 925 923 1.4 0-24 1.8 1.3 13,061.7 
Chemicals and photographic supplies 1,087 1,078 1.0 0-21 2.2 2.2 37,415.7 
Leather, rubber, footwear, and travel 
goods 176 176 1.9 0-27.3 2.7 1.4 2,776.0 
Wood, pulp, paper, and furniture 345 344 3.8 0-22.7 4.2 1.1 9,312.3 
Table III.3 (cont'd)
                                                      
22 This analysis does not take into account various duty and tax concessions on imported inputs which 
contribute to increasing tariff escalation and thereby the level of effective protection. WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 48 
 
 
Applied 2008 rates Analysis No. of 
linesa No. of lines 
used Simple avg. 
tariff (%) Tariff range 
(%) Std-dev 
(%) CV Imports 2007
(US$ million) 
Textiles and clothing 1,105 1, 104 5.3 0-121.6 5. 9 1.1 7,931.2 
Transport equipment 184 183 1.5 0-22.7 2.3 1.6 14,205.9 
Non-electric machinery 851 850 0.7 0-23.6 1.2 1.8 18,398.2 
Electric machinery 382 382 0.9 0-14.6 1.3 1.4 11,868.7 
Non-agricultural articles n.e.s. 492 488 1.3 0-11.4 1.7 1.4 14,829.5 
By ISIC sectorc        
Agriculture, hunting, forestry, and 
fishing 773 661 22.7 0-1,256.2 68.0 3.0 3,049.5 
Mining and quarrying 106 106 0.5 0-8.2 1.3 2.8 4,055.1 
Manufacturing 7,205 7,048 6.9 0-1,468.7 35.4 5.1 151,819.7 
By stage of processing        
Raw materials 1,238 1,095 14.2 0-1,256.2 54.0 3.8 11,046.2 
Semi-processed products 2,439 2,394 3.6 0-251.6 13.6 3.8 32,689.8 
Fully-processed products 4,408 4,327 9.1 0-1,468.7 43.8 4.8 117,444.2 
a Total number of lines is listed.  Tariff rates are base d on a lower frequency (number of lines) since lines with no ad valorem  
equivalents are excluded.  
b 19 tariff lines on petroleum products are not taken into account. 
c International Standard Industrial Classification (Rev.2).  Electricity, gas, and water are excluded (1 tariff line). 
Note: CV = coefficient of variation. 
Source : WTO Secretariat estimates, based on data provided by  the Swiss authorities;  and imports 2007 from UNSD, 
Comtrade database. 
0.05.010.015.020.025.030.035.040.0Chart III.2
Tariff escalation by ISIC 2-digit industry, 2008
Sourc e: WTO Secretariat estimates, based on data provided by the Swiss authorities.
All products
Food,
beverages
Textiles,
apparel
Wood product s
Paper, printing
Chemicals ,
plastics
Non-metalli c
minera l
products
Basic meta l
products
Fabricated meta l
products
Other
manufacturin gNOT APPLICABLEAgriculture
MiningRaw materials Semi-processed Fully-processedNOT APPLICABLEPer cent
 Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 49 
 
 
33. In the Uruguay Round, Switzerland and Liechtenstein bound most of their tariff lines using 
specific customs duties on agricultural products, and double binding, i.e. alternate duties (the higher of specific or ad valorem  tariffs) on other products.  Most tariff lines (99%) at the HS eight-digit level 
are currently bound;  exceptions cover 86 lines for g as, petroleum, and related products.  Switzerland, 
on behalf of the customs union, reduced bound tari ffs on all products to their final Uruguay Round 
levels on 1 January 2004. 
(c) Tariff preferences 
34. Under the 1923 Customs Union Treaty between Switzerland and Liechte nstein, all goods are 
traded freely between the two countries.  The EFTA  agreements between the European Communities 
and Switzerland, and the EEA Agreement (for Liechtenstein ) provide for free trade in most           
non-agricultural products, subject to a valid certificate of origin.  In contrast, agricultural products are 
not yet generally subject to preferential tariffs when they are imported into the customs union. For instance, average tariff protection is 27% for agri cultural goods (WTO definition) from the EC and 
27.6% for goods originating in the other EFTA  members 27.6%, compared with average MFN 
protection of 29.3% (Table III.4). 
Table III.4 
Average tariff, by trade regime, 2008 
   ISIC Rev. 2 
All 
products WTO 
agriculture WTO non-
agriculturea Agriculture, 
hunting, 
forestry, and 
fishing Mining and 
quarrying Manuf. Petroleum  
Avg. % 
duty 
free Avg. % 
duty 
free Avg. % 
duty 
free Avg. % 
duty 
free Avg. % 
duty 
free Avg. % 
duty 
free Avg. % 
duty 
free 
MFN 8.1 18.3 29.3 20.0 2.0 17.5 22.6 26.8 0.5 62.3 6.9 16.8 0.0 100.0 
R e c i p r o c a l                 
EC 6.1 82.5 27.0 31.2 0.0 99.3 22.1 36.0 0.0 100.0 4.7 87.2 0.0 100.0 
EFTA 6.2 82.5 27.6 29.6 0.0 100.0 22.4 35.0 0.0 100.0 4.8 87.4 0.0 100.0 
Chile 6.3 82.7 28.1 30.8 0.0 99.8 22.1 41.3 0.0 100.0 4.9 86.9 0.0 100.0 
Croatia 6.5 80.9 28.9 23.6 0.0 99.8 22.4 33.8 0.0 100.0 5.1 85.7 0.0 100.0 
Egypt 6.3 83.1 28.0 32.3 0.0 99.9 21.9 46.3 0.0 100.0 4.9 86.8 0.0 100.0 
Faeroe Islands 6.5 80.4 29.0 21.3 0.0 99.9 22.6 30.2 0.0 100.0 5.1 85.5 0.0 100.0 
Israel 6.3 82.4 27.9 29.2 0.0 99.9 22.1 39.6 0.0 100.0 4.9 86.7 0.0 100.0 
Jordan 6.3 81.5 28.2 25.9 0.0 99.8 22.2 36.6 0.0 100.0 4.9 86.0 0.0 100.0 
Korea (Rep. 
of) 6.2 84.2 27.6 36.5 0.0 99.9 21.8 46.8 0.0 100.0 4.8 87.9 0.0 100.0 
Lebanon 6.3 82.6 28.1 30.5 0.0 99.8 22.0 42.8 0.0 100.0 4.9 86.6 0.0 100.0 
Macedonia 
(FYR) 6.3 81.6 28.1 26.4 0.0 99.8 22.3 36.5 0.0 100.0 4.9 86.2 0.0 100.0 
Mexico 6.5 82.2 28.7 28.6 0.0 99.8 22.3 40.3 0.0 100.0 5.1 86.4 0.0 100.0 
Morocco 6.3 82.0 28.0 28.0 0.0 99.9 22.2 38.7 0.0 100.0 4.9 86.4 0.0 100.0 
Palestinian 
Authority 6.3 81.0 28.3 23.6 0.0 99.9 22.4 32.4 0.0 100.0 4.9 85.9 0.0 100.0 
SACU 5.9 84.4 26.6 36.8 0.0 100.0 22.0 44.8 0.0 100.0 4.5 88.4 0.0 100.0 
Singapore 6.4 81.8 28.3 27.0 0.0 99.8 22.4 35.2 0.0 100.0 4.9 86.5 0.0 100.0 
Tunisia 6.4 81.0 28.5 24.1 0.0 99.8 22.5 32.5 0.0 100.0 5.0 86.0 0.0 100.0 
Turkey 6.2 82.8 27.8 31.3 0.0 99.8 22.2 39.7 0.0 100.0 4.8 87.2 0.0 100.0 
Non-
reciprocal                            
LDCs 0.0 99.9 0.0 99.6 0.0 100.0 0.0 100.0 0.0 100.0 0.0 99.9 0.0 100.0 
GSP 6.6 71.7 27.7 35.2 0.5 83.6 21.8 46.6 0.0 100.0 5.3 74.0 0.0 100.0 
a Excluding petroleum.  
Source:   WTO Secretariat estimates, based on data provided by the Swiss authorities. WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 50 
 
 
35. Switzerland and Liechtenstein are parties to 15 free-trade agreements under the aegis of 
EFTA.23  Under these agreements, duty-free treatment is granted to 99.8% of all non-agricultural 
imports, while preferences are granted on a limited ra nge of agricultural products.  As a result, the 
agricultural (WTO definition) preferential tariff averages range from 26.6% to 29.0% depending on 
the country, compared with an MFN tariff average of 29.3%. 
36. Under their Generalized System of Preferences (GSP) scheme, Switzerland and Liechtenstein 
grant non-reciprocal preferential ta riff treatment to eligible countri es, as well as additional preferences 
to least developed countries (LDCs).24  LDCs enjoy substantial preferences:  99.6% of all agricultural 
products (WTO definition) and 100% of all no n-agricultural products are entitled to duty-free 
treatment.  The authorities note that, for the remain ing agricultural products (i.e. rice and sugar), a 
phased tariff reduction, starting on 1 April 2007, is to lead to duty-free access by September 2009.25  
In contrast, preferences granted on agricultural goods under the GSP do not vary substantially from 
the preferences granted under agreements conclude d under the EFTA.  Average tariff protection under 
the GSP is 27.2% for agricultural goods compared with MFN protection of 29.3%;  moreover, the 
average preferential tariff on non-agricultural goods  under GSP is higher (0.5%) than under the free-
trade agreements (0%). 
(iv) Tariff exemptions and reductions 
37. Tariff exemptions and reductions are granted in accordance with the Federal Law on customs 
tariffs26, or as stipulated by the Federal Council (Table AIII.2).27  For instance, in cases of national 
emergency, the Federal Council may reduce tariffs or exempt imports from tariffs.28  During the 
period under review the Federal Council has not reduced  or eliminated tariffs on grounds of national 
emergency.  
38. Goods in transit, under temporary admission29, or under the inward-processing regime are 
partially or fully exempt from duties and other ta xes (e.g. VAT) when entering the customs union.  
Customs may authorize the temporary importation of goods under the inward-processing regime, if 
this is not against the "public interest" (e.g. on gr ounds of national security, public health, food safety, 
traceability of goods, and consumer protection), and if domestically produced goods in the same 
quantity, state, and quality of those being worked on or transformed are exported ( trafic fondé sur 
l'équivalence ), or if the imported goods are re-expor ted after being processed or repaired ( trafic fondé 
sur l'identité ).30  Agricultural goods may enter the custom s union under the inward-processing regime, 
if supply of a similar domestic product is not suffi cient to meet the domestic demand or if domestic 
prices are so high as to disadvantage the domestic industry, which cannot be compensated by "other 
measures".31  However, approval for agricultural products  to enter the inward-processing regime may, 
in certain instances, require at least two months, b ecause different industrial organizations and federal 
                                                      
23 Five of the agreements have entered into force since the last Review:  EFTA -Tunisia,                
EFTA-Republic of Korea, EFTA-Leb anon, EFTA-Egypt, and EFTA-SACU. 
24 UNCTAD (2006). 
25 RS 632.911. 
26 RS 632.10.   
27 RS 916.01. 
28 RS 632.10.   
29 Imported goods destined for re-export may enter the Swiss territory exempt from duties and charges 
under the temporary admission regime (Article 30 of  RS 631.01).  The importer must, however, apply for a 
certificate from the Customs Administration and provide a deposit;  in case charges may apply.  The certificate 
must be presented to Customs within the stipulated tim e, with the goods in unchanged condition for re-export. 
30 Swiss Federal Customs Administration (2007a);  and Article 12 of RS 631.0. 
31 Swiss Federal Customs Administration (2007a);  RS 631.01;  and RS 910.1. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 51 
 
 
offices may need to be consulted.32  "Other measures" refer to compensation given by producers 
organizations to their members to make up the diffe rence between domestic and international prices;  
compensation is financed with members' contribution.   
39. Certain items may be imported at reduced duties depending upon their final use.33  These are 
mainly agricultural products (grains,  oilseeds, and edible oils) and paper.  In most instances, tariff 
reductions are granted if there is "economic ne ed" and no preponderant public interest to the 
contrary.34 
40. Goods introduced by an individual in sp ecified quantities and value (not exceeding 
Sw F 300 per day) for pers onal consumption may be exempt from import duties.35  Gifts received by 
Swiss residents, of a value of less than Sw F 100, with the exception of manufactured tobacco 
products and alcoholic beverages, en ter the territory exempt from duties.36  
(v) Other duties, taxes, and charges 
41. In the Uruguay Round, Switzerland and Liechtens tein bound "other duties and charges" on 
imports at zero.  However, fees are levied on imports of goods that are subject to compulsory reserve stock requirements, to finance thes e reserve stocks (Table III.5);  the fees are not collected by the 
Federal Customs Administration but by other bodies su ch as Réservesuisse.  The sum of this fee or 
charge and the applied MFN tariff may not exceed the bound tariff.   
Table III.5 
Import fee to finance compulsory reserve stocks, 2008 
Product Fee 
Aviation fuel Sw F 3.30/m3 
Central heating oil Sw F 3.30/m3 
Diesel Sw F 14.30/m3 
Gasoline Sw F 3.30/m3 
Cereal Sw F 3.70/100 kg 
Coffee Sw F 3.75/100 kg 
Fats/oil Sw F 10.0/100 kg 
Rice Sw F 4.25/100 kg 
Sugar Sw F 16.0/100 kg 
Wheat  Sw F 1.20/100 kg 
Antibiotics (animal) Sw F 4.0/kg 
Antibiotics (human) Sw F 21.0/kg 
Oseltamivir (avian flu) Sw F 100.0/kg 
Fertilizer Sw F 30.0/tonne 
Source:  Information provided by the Swiss authorities.  
                                                      
32 Swiss Federal Customs Administration (2007a) . 
33 RS 632.10 and RS 631.012. 
34 Article 50 of RS 631.01. 
35 Exemption from customs duties: Article 66 of RS 631.01;  and exemption from VAT:  Article 1b of 
RS 641.201.31.  For a detailed list of goods and quantities subject to duty reduction or exemption, see Annex 1 
of RS 631.011;  and RS 631.0.   
36 Exemption from customs duties: Article 1 of RS 631.011;  and exemption from VAT:  Article 1a of 
RS 641.201.31.  For a complete list of tariffs applied to goods entering under " trafic touristique ", refer to 
RS 631.011.   WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 52 
 
 
42. In both Switzerland and Liechtenstein imports and domestically produced goods and services 
are subject to VAT, and an additional tax is levi ed on goods such as motor vehicles, mineral oils, 
alcoholic beverages, and tobacco. 
43. There have been no major changes to the legisl ation on the value added tax during the review 
period.  Hence, imported, as well as domestically  produced, goods and services remain subject to 
VAT.  VAT on imported services is levied on the "cost of services provided", and on merchandise imports, it applies to the c.i.f. price plus the cu stoms duty.  If the Federal Administration has any 
doubts about the declared valu e, it will estimate the value.
37  The estimation is based on one of five 
methods, used in the following order:  value of same objects;  value of similar objects;  value based on 
the deductive valuation method;  a calcu lated value;  and estimated value. 
44. VAT applies at the same level and rates to  imports and domestically produced goods and 
services.  There are four VAT rates:  the standard rate of 7.6%;  a special rate of 3.6% on hotel services
38;  a reduced rate of 2.4% on certain goods and services, including beverages (excluding 
alcoholic drinks), food, meats, cereals, plants, seed, and flowers, medici ne and drugs, newspapers, 
magazines, and books and other printed materials;  and a zero rate for exports.  The taxation base for 
imports of databanks and software is the value of  the related services.  Good and services exempt 
from VAT include educational, cultural, and hea lth services, and services performed by institutions 
for social welfare, assistance and security, as well as official stamps.   
45. Customs administration continues to collect a 4% tax on motor vehicles;  the tax is levied on 
the customs-duty-inclusive c.i.f. value of imports, or on the invoice/catalogue price.39 
46. The consumption tax is still levied on impor ted and domestically produ ced mineral oils and 
fuels.  The tax rate varies according to the pr oduct and its final use;  it ranges from Sw F 0.759 on 
diesel and Sw F 0.74 on unleaded gasoline to Sw F 0.03 on extra-light heating oil.  Reduced rates 
apply to fuels used in agricu lture, forestry, and fisheries.40  The tax rates for natural gas and liquid gas 
used as fuel were reduced on 1 July 2008, and a tax exemption for fuels produced with renewable 
resources was put in place, as long as they meet the minimal requirements stipulated in the national 
ecological and social plans.41  Mineral oils to be used as fuel  are also subject to a surcharge of 
Sw F 305.40 per 1,000 l (at 15°C) for unleaded gasolin e;  Sw F 300 per 1,000 l (at 15°C) for diesel;  
and Sw F 109.70 per 1,000 kg fo r natural gas or for other g aseous hydrocarbons (HS 2711.2110 to 
HS 2711.2910).42  
47. On 1 January 2008, a tax of Sw F 12 per tonne of CO 2 was introducted on mineral oils 
(e.g. stationary fuels not for transport use), mainly h eating oil, natural gas, and coal;  mineral oils to 
be used as fuel are exempt.43  The CO 2 tax may be reimbursed, for instance, to companies that have 
made commitments regarding their CO 2 emissions and are in compliance.  For certain imports, such as 
                                                      
37 Swiss Federal Customs Administration (2007b).  
38 Taxation.ch online information, "Value added tax".  Viewed at:  
http://www.taxation.ch/index.cfm/ fuseaction/show/temp/d efault/path/1-544.htm [5 March 2008]. 
39 Swiss Federal Customs Administration online information, "Automobile Tax, Motorized Road 
Vehicles". Viewed at: http://www.ez v.admin.ch/zollinfo_firmen/steuern_a bgaben/00383/index.html?lang=en 
[5 March 2008]. 
40 Swiss Federal Customs Administration online information, "Impôt sur les huiles minérales".  Viewed 
at: http://www.ezv.admin.ch/zollinfo_firmen/steuern_ abgaben/00382/index.html?lang=fr&print_style=yes 
[5 March 2004]. 
41 RS 641.61, modification of 23 March 2007.   
42 RS 641.611; and RS 641.61, modification of 23 March 2007.   
43 Federal Office for the Environment online information, "CO 2 tax".  Viewed at:  
http://www.bafu.admin.ch/co2-abgabe/index.html?lang=fr [5 March 2008]. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 53 
 
 
heating oil, natural gas, and coal, the CO 2 tax constitutes one of the elements that form the basis for 
calculating the VAT.44 
48. The tax on volatile organic compounds (VOCs) of  Sw F 3/kg, introduced for environmental 
reasons in 2000, is charged on a positive list of imported and domestically produced VOCs and 
products containing VOCs.45  VOCs are exempt from this tax if used in such a way that they are not 
released into the environment or if they are exported.46 
49. Imported and domestically produced cigarettes,  cigars, other tobacco products, and rolling 
paper are subject to specific, ad valorem , or compound taxes.47  Since 2006, for instance, the tax on 
cigarettes (HS 2402.2010, HS 2402.2020, and HS 2402.9000) has been set at Sw F 99.23 per 
1,000 units plus 25% of the sale value at retail leve l, plus two additional charges.  These are:  the 
charge for the SOTA (Société coopérative pour l'achat du tabac indigène) at Sw F 1.30 per 
1,000 units, used to finance domestic  tobacco production;  and charge of Sw F 1.30 per 1,000 units to 
finance a fund to prevent smoking.48 
50. For cigars (HS 2402.1000 and HS 2402.9000), the tax is fixed per 1,000 units depending upon 
the weight, and on the retail price per unit;  for cut tobacco (HS 2403.1000), it is calculated on the 
effective weight (for the specific component), an d on the retail price per kg.  For rolled tobacco, 
chewing tobacco, and others, the tax is fixed accord ing to the actual weight.  The tax on rolling paper 
is based on each unit.49 
51. The tax on beer is assessed in accordance with th e strength of the beer (º Plato), on the basis 
of the original gravity.  It varies from Sw F 16.88 per hl for light beer (up to 10.0º Plato degrees), Sw F 25.32 per hl for regular and special beer (10.1º to 14.0º Plato), to Sw F 33.76 per hl for strong 
beer (from 14.1º Plato).
50 
52. The excise tax on salt, which replaces the m onopoly fee on salt, is still applied in 
Liechtenstein (Box II.1).51  The tax is specific and ranges from Sw F 175 per tonne for packaged 
edible salt to Sw F 0.94 per tonne for salt for industrial use.52 
                                                      
44 Swiss Federal Customs Administration online information, "Taxe sur le CO 2".  Viewed at: 
http://www.ezv.admin.ch/zollinfo_firmen/steuern_abgaben/00379/02315/index.html?lang=fr [5 March 2008].  
45 For a complete list of goods subject to the tax on Organic Volatile Compounds refer to RS 814.018 .   
46 Swiss Federal Customs Administration online information, "Taxe d'incitation sur les composés 
organiques volatils (COV)".   Viewed at: http://www.ezv.admin.ch/zollinfo_firmen/steuern_abgaben/00381/ 
index.html?lang=fr [5 March 2008]. 
47 For more details on the tax on rolling paper, refe r to Swiss Federal Customs Administration online 
information, "Notice pour l'importation professionnelle de papier à cigarette" .  Viewed at:  
http://www.ezv.admin.ch/zollinfo_firmen/steuern_abgaben/00385/02115/index.html?lang=fr&download=M3w
BPgDB/8ull6Du36WenojQ1NTTjaXZnqWfVp7Yhmfhnapmmc7Zi6rZnqCkkIN0f3yDbKbXrZ6lhuDZz8mMps2gpKfo&typ=.pdf [5 March 2008]. 
48 Swiss Federal Customs Administration online information, "Notice pour l'importation 
professionnelle de cigarettes" .  Viewed at: http://www.ezv.admin.ch/zollinfo_firmen/steuern_abgaben/00385/ 
02115/index.html?lang=fr&download=M3wBPgDB/8ull6Du36WenojQ1NTTjaXZnqWfVp7Yhmfhnapmmc7Zi
6rZnqCkkIN0f3yEbKbXrZ6lhuDZz8mMps2gpKfo&typ=.pdf [5 March 2008]. 
49 RS 641.31.   
50 Swiss Federal Customs Administration online info rmation, "Beer Excise Tax".  Viewed at:  
http://www.ezv.admin.ch/zollinfo_firmen/steuern_abga ben/00386/index.html?lang=fr [5 March 2008]. 
51 The tax on salt  varies (per tonne) from Sw F 175 on salt for direct human consumption, to Sw F 50 
on road salt, Sw F 0.94 on salt for industrial use, and Sw F 5 for other purposes  (LGBl. 1995/98 and 
LGBl. 1995/135). 
52 LGBl. 1995/135. WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 54 
 
 
(vi) Import prohibitions, restrictions, and licensing 
(a) Import prohibitions and restrictions 
53. Import controls are maintained mainly on gr ounds of public health, plant health, safety, 
security, morality, phytosanitary, environmental, and species protection (CITES), but also to protect 
the Swiss and Liechtenstein economies.  The Fede ral Law on external economic measures allows both 
countries to keep imports of goods and services under surveillance, and to limit or prohibit them for 
an indeterminate period of time, if measures are taken by trading partners or if extraordinary events in 
a foreign country affect the Swiss economy.53 
54. Goods subject to import prohibitions and restri ctions do not appear to have changed since 
2004.  Import prohibitions or restrictions may be put in place in accordance with economic sanctions 
stipulated by the UN Security Council.  In  Switzerland and Liechtenstein, these sanctions are 
implemented by ordinances based on the Federal Law on the application of inte rnational sanctions of 
2003 (RS 946.231) and the Law of Trade Sanctions of 1991 (RS 646.21), respectively.  Switzerland 
and Liechtenstein may, on a case-by-case basis, al so implement economic sanctions applied by the 
EC.54 
55. Switzerland and Liechtenstein may prohibit imports according to their origin or for 
phytosanitary reasons.  Imports of agri cultural goods may be prohibited temporarily55 or 
permanently56 for phytosanitary reasons.   
56. Prohibitions according to origin apply, for instance, to imports of rough diamonds under the 
Kimberley Process Certification Scheme, aimed at  combating international trade in "conflict 
diamonds".  Hence, all shipments of rough diamond must be accompanied by a valid Kimberley 
Process Certificate.57   
(b) Import licensing 
57. In 2003, Switzerland and Liechtenstein indicated  that there had been no changes in the 
licensing procedures notified to the WTO in 2002.58  However, since then, no notifications on the 
licensing regime have been received, hence it is no t clear whether there have been changes during the 
review period.  According to the authorities, there have been  no changes to the licensing system since 
2003.   The ordinance that allows the Federal Council to subject iron and steel and their products to 
import licensing, is still in force59;  however, no  import licences have been applied on these items 
since  the introduction of the ordinance. 
58. Switzerland and Liechtenstein continue to a pply automatic and non-automatic licences;  the 
licensing procedures and fees differ according to pr oduct group.  Licensing requirements apply to 
agricultural products, goods subject to compulsory r eserve stock, and non-agricultural products such 
                                                      
53 RS 946.201.   
54 For an overview of all the ordinances on sanctions  currently in force, see SECO online information, 
"Sanctions/Embargos: Sanctions de la Suisse ".  Vi ewed at:  http://www.seco.admin.ch/themen/00513/00620/ 
00622/index.html?lang=fr [4 March 2008]. 
55 RS 916.202.1. 
56 For a complete list of prohibited agricultural imports , see Annex 3 of RS 916.20;  also notified to the 
WTO in 2002 (WTO document G/SPS/N/CHE/28, 1 February 2002).  
57 RS 946.231.11. 
58 WTO documents G/LIC/N/3/CHE/4, 8 August 2002 and G/LIC/N/3/CHE/4/Add.1, 14 April 2003. 
59 RS 946.201.1. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 55 
 
 
as war material, weapons and their accessories, e xplosive materials, and nuclear fuel.  Import 
licensing is maintained mainly to manage tariff qu otas and to ensure the compulsory stock reserve, 
and on health, safety, security, morality, phytosanita ry, and environmental grounds.  Appeals against 
decisions relating to licensing may be made to the Federal Administrative Court (TFA) (as of 
January 2007) and, in second and last instance, to the Swiss Federal Court.  Since 2004, there have 
been ten appeals, all concerning agricultural goods.  
Non-automatic licensing 
59. Non-automatic licences are used mainly for ta riff quota (TQ) management purposes.  The 
administration of tariff quotas varies by product and by  year (Table IV.5).  For instance, in 2008, 
some products, though subject to tariff quota in accordance with the customs union's commitments 
under the WTO Agreement on Agriculture, coul d be imported without quantitative limitation 
(e.g. acid casein, eggs in shell, egg products ot her than dried, grapes for pressing and grape juice , and 
coarse grains  for processing, if imported by special mills).60 
60. In general, quotas are allocated through tenders, acco rding to previous imports, on a         
first-come first-served basis, on a pro-rata basi s, and/or according to the amount produced or 
purchased domestically of similar local goods (e.g. fro zen vegetables).  In general, imports subject to 
tariff quotas require a non-automatic import licence .  However, some of these products may be 
imported with a general import permit ( permis général d'importation,  PGI) or an automatic licence.61  
Imports of agricultural goods of less than 20 kg or 20 litres are generally exempt from PGI and 
automatic licence.62 
61. The validity of a non-automatic licence is ge nerally limited and varies according to the 
product.  Any individual, business, or pr oducer and its marketing entities established in Switzerland or 
Liechtenstein may apply for a non-au tomatic licence to import products subject to TQs.  Licences are 
granted by different agencies accor ding to product.  All non-automatic li cences are transferable, with the 
exception of those licences granted for qu otas allocated on a pr o-rata basis.   
Automatic licensing  
62. The automatic licence or general import permit ( permit général d'importation , PGI) applies to 
selected agricultural goods, including all products subj ect to threshold prices or to compulsary reserve 
stock requirements, such as sugar.63  The PGI is also used for statistical purposes, and to ensure 
collection of  fees (on goods subject to compulsory reserve stocks) that are  not levied by the Federal 
Customs Administration (sections (v) above and (vii) below). 
63. Applications for automatic licences must be subm itted three to five days in advance of the 
import.  For certain products, licences may be gran ted by telephone.  Any natural or legal person, 
domiciled in Switzerland or Liechtenstein, is eligible to  apply, irrespective of nationality or origin.  In 
some cases, the applicant must en gage in trade in the product in question, regularly and for business 
                                                      
60 WTO document G/AG/N/CHE/13/Add.9, 8 January 2008 and G/AG/N/CHE/13/Add.10, 
27 May 2008. 
61 PGIs are issued upon written request;  they ar e of unlimited duration and non-transferable, and 
subject to a fee ranging from Sw F 3 to 5 per imported batch according to product (RS 916.01). 
62 RS 916.01.  
63 The licensing systems for agricultural products are governed by the Federal Law on agriculture 
(RS 910.1), which entered into force on 1 January 1999;  the Federal Law on alcohol (RS 680);  and the General ordinance on imports of agricultural products (RS 916.01). WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 56 
 
 
purposes.  The automati c licence fee for agricultural products is  Sw F 5 (Sw F 3 for wines).  Automatic 
licences are granted by different agencies according to th e product, and are non-transferable. 
(vii) Compulsory reserve stock 
64. Goods subject to compulsory reserve stock require an automatic import licence64, granted by 
two agencies under the authority of the Federal Offi ce for National Economic Supply.  The licence is 
conditional upon the conclusion of a re serve stock contract.  Through th is contract, the owner of the 
stock must become member of the relevant ma ndatory-stock organization and contribute to a 
guarantee fund in order to cover the storage cost.  The guarantee funds are financed through import 
fees levied on the products.  The costs of fi nancing compulsory stockholding are passed on to 
consumers. 
65. The regime applies to, inter alia , liquid fuels (Swiss Central Office for the Import of Fuels, 
CARBURA), edible oils and fats, coffee, sugar, and wheat and other cereals (Reservesuisse).  These 
goods may be imported from any country, without lim itation, for an unlimited period.  According to 
the authorities, the regime was abolished on antib iotics (Helvecura), fertilizers (Agricura), and 
lubrication oil (Swiss Association of Importers of Lubrication Oil, VSS).  However, the Government 
may place other products of vital importance under the compulsory reserve stock regime.65   
66. The amount that each importer must put aside for the compulsory reserve stock is determined 
on the basis of the amount imported.  In general, the level of compulsory reserves currently corresponds to four months of average consumption of each product (with a few exceptions, e.g. 4.5 months for liquid fuels and six months for antibiotics).   
(viii) Local-content and local- purchase requirements 
67. The " prise en charge " system, which applies to some agricultural products subject to tariff 
quotas, requires traders to purchase or produce similar domestic products in order to import (Chapter IV(2)(ii)).  Sugar refineries may obtain subsidies as long as they refine specified quantities 
of domestically produced sugar beet (Chapter IV (2)).  Television broadcasters with a national or 
regional language programme service are still obliged  to reserve at least 50% of their broadcasting 
time for Swiss or European productions and at l east 10% of broadcasting ti me or 10% of production 
costs for works from independent Swiss or European producers.  In addition, television broadcasters 
with a national or regional language programme servi ce, which broadcast films, must spend at least 
4% of their gross revenue on purchasing Swiss film s (productions or co-productions) or must pay a 
4% fee.   
(ix) Contingency measures 
68. Switzerland and Liechtenstein took no anti-dumpi ng or countervailing actions during      
2005-07.
66  They have no safeguard measures in place. 
                                                      
64 WTO document  G/LIC/N/3/CHE/4, 8 August 2002. 
65 Federal Law on national economic supply, as well as  the ordinances on compulsory reserve stocks 
specific to each product (RS 531, RS 531.215.11, RS 531.215.12, RS 531.215.13, RS 531.215.14, 
RS 531 215.17, RS 531.215.25, RS  531.215.31, and RS 531.215.41). 
66 WTO documents G/ADP/N/series, 25 October 2005-17 April 2007;  G/SCM/N/series, 
19 October 2005-18 April 2007;  G/ADP/N/series, 25 October 2005-11 October 2007;  and G/SCM/N/series, 19 October 2005-18 April 2007. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 57 
 
 
69. Several pieces of legislation allow for the in crease of tariffs or the imposition of non-tariff 
measures if the national interests are at stake or in cases of emergency.  For instance, Article 7 of the 
Federal Law on customs tariffs allows for modifica tions in tariffs, including increases, when the 
national interests are at stake;  Article 11 pr ovides for temporary tariff increases on agricultural 
products67;  and Article 1 of the Federal Law on external  economic measures allows the application of 
temporary non-tariff measures in emergency situations  (not yet legally defined), to counter measures 
taken by other countries.68  However, these provisions have ne ver been used.  Moreover, under the 
legal systems of Switzerland and Liechtenstein, tr eaties and international agreements, such as the 
WTO Agreements, form an integral part of the national legislation and can therefore serve as legal 
basis for imposing contingency measures.  In a ddition, under Article 5 of the WTO Agreement on 
Agriculture, Switzerland and Liechtenstein have reser ved the right to invoke the special safeguard 
clause for all agricultural products subject to tariff quotas;  no such measures have been introduced 
since 2004.  SECO is the competent authority fo r investigating any alleged cases of dumping or 
subsidization in Switzerland. 
(x) Standards and other technical requirements 
(a) Standardization, testing, and certification 
70. Standardization, in Switzerland, is in the hands of private bodies grouped under the Swiss 
Association for Standardization  (Schweizerische Normen-Vereinigung, SNV), a private non-profit 
association comprising some 600 members, including private associations, institutions, and representatives from the public sector.
69  The SNV is a member of, inter alia , the International 
Organization for Standardization (ISO) and the European Committee for Standardization (CEN).70  It 
is Switzerland's enquiry point under the TBT Agre ement, and accepted the WTO TBT Code of Good 
Practice on behalf of its members.   The Swiss enquiry point provides information on all current and 
proposed technical regulations stemming from the Federa l Government, local institutions, or         
non-governmental bodies.71 
71. The Federal Law on technical barriers to tr ade (LETC), in force since 1996, regulates 
standards and other technical regulations.72  This law applies to all federal and cantonal government 
services involved in the regulatory process;  it is monitored and implemented by the State Secretariat for Economic Affairs (SECO).  Under the law, st andards are initiated by different associations, 
institutions, and agencies.  The SNV provides regular  information on the various stages of drafting.  
Interested groups are invited to comment on the draft before the final approval.  To this end, the SNV 
publishes draft standards in its magazine  Information switec .   
72. The SNV forwards any comments or objections on draft standards to the relevant national or 
international standardization orga nizations.  The comments are then discussed by expert bodies and 
may result in a revision of the draft standards.  Dr aft standards are approved by vote in the different 
                                                     
 
67 RS 632.10. 
68 RS 946.201. 
69 Therefore, standardization rests with a variety of organizations, including the Swiss Information and 
Communications Technology Association (ASUT);  Association for Electrical Engineering, Power, and Information Technologies (Electrosui sse);  Swiss Mechanical and Electri cal Engineering Industries;  Swiss 
Association of Engineers and Architects (SIA);  Swiss Association of Road and Transport Experts (VSS);  and 
the Federation of the Swiss Watch Industry. 
70 Swiss Association of Standardization online information, "Role of SNV".  Viewed at:  
http://www.snv.ch/?en/standardizatio n/role_of_snv/ [1 April 2008]. 
71 WTO document G/TBT/2/Add.7/Rev.1, 14 February 2008. 
72 RS 946.51.   WT/TPR/S/208/Rev.1 Trade Policy Review 
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SNV committees.  Once a standard has been approved, it is published in Information switec .  The 
SNV is obliged to receive and consider every request  related to standards.  Standards are subject to 
review every five years, unless there is a need to amend them in the meantime.  This process is to 
ensure that standards are kept up-to-date and rele vant, given technological changes.  For the purpose 
of revision, standards go through the same process as drafts.   
73. The Swiss Parliament has conferred power fo r establishing technical regulations on the 
Federal Council or the relevant federal departments, which issu e the implementing ordinances.  
Technical regulations are subject to a regulatory impact assessment prior to their introduction and, 
when public interests are at stake, technical regulations may be discussed by the Parliament.   
74. Switzerland has continued the process of harmoni zing its standards and technical regulations 
with those of the EC.  According to the authorities, by the end of 2007, some 95% of the standards in force in the customs territory corr esponded to international, including European, standards (92% in 
2004 and 87% in 2000).  In addition, in Octobe r 2007, the Federal Council reviewed the Swiss 
technical regulations on, inter alia , foodstuffs, chemicals, telecomm unications equipment, animal 
feed, pressure vessels, and heat systems.  Harmoni zation has also taken place in metrology;  hence, 
several ordinances on measuring instruments have been revised since 2004.
73   
75. The Swiss Accreditation Service (SAS), an independent division under the SECO74, examines 
and accredits conformity assessment bodies (laboratories, inspection bodies, and certification bodies).
75  Its activities are regulated by the LETC and the Ordinance on accreditation and 
designation.76  Accreditation is for five years and may be renewed.  Surveillance takes place at regular 
intervals in accordance with ISO 1700 requirements,  and whenever deemed necessary to ensure the 
technical competence of the accredited bodies .  The SAS is assisted by the Federal Accreditation 
Commission (FAC), appointed by the Federal Depa rtment of Economic Affairs (FDEA).  The FAC 
advises the authorities on all questions related to acc reditation, and acts as the court of first instance 
for complaints against the decisions by  SAS in regard to the accredited bodies.77  
76. The Federal Government has the authority to conclude mutual recognition agreements on  
conformity assessment procedures.  In the absence of an agreement, Switzerland accepts test reports 
or conformity certificates by foreign organizati ons whose procedures meet Swiss requirements and 
who have equivalent qualifica tions to those required in Switzerland.  The mutual recognition 
agreement (MRA) between Switzerla nd and the EC, in force since 2002, covers most non-agricultural 
products.  Hence, to the extent that Swiss regulati ons and those of the EC are recognized as equivalent 
in the context of the Agreement, one conformity t est is necessary;  the body conducting the test may 
be located either in Switzerland or in the EC.  When  the regulations are not completely equivalent, the 
conformity assessment must cover all aspects of both regulations However, both tests can be 
                                                      
73 WTO documents G/TBT/N/CHE/46, 27 October 2004 and G/TBT/N/CHE/50, 31 August 2005;  and 
RS 941.210, RS 941.212, RS 941.214, RS 941.231 , RS 941.241, RS 941.242, and RS 941.251.  
74 Until 2006, the Swiss Accreditation Service (S AS) was within the Swiss Federal Office for 
Metrology. 
75 For a detailed description of the accreditation proced ures for calibration, tes ting, inspection, product 
certification, certification of quality management sy stems, certification of Eco-Management Systems and 
certification of personnel, see Swiss Accreditation Se rvice online information, "Accreditation Procedure".  
Viewed at:  http://www.seco.admin.ch/sas/00026 /00057/index.html?lang=en [1 April 2008]. 
76 Swiss Accreditation Service online information, "T he history of accreditation in Switzerland".  
Viewed at:  http://www.seco.admin.ch/sas/00040/00099/inde x.html?lang=en [1 April 2008];  and RS 946.512. 
77 Swiss Accreditation Service online information, "Federal Accreditation Commission".  Viewed at:  
http://www.seco.admin.ch/sas/00028/inde x.html?lang=en [1 April 2008]. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 59 
 
 
conducted by the same laboratory.  A similar ag reement has been concluded with the other EFTA 
States.  The MRA with Canada has a narrower pr oduct scope, reflecting trade between the countries. 
77. Liechtenstein does not have its own standard s or technical regulations.  Until 2005, the 
Liechtenstein Chamber of Industry and Commerce was a member of the SNV;  currently, only a few 
Liechtenstein companies are members.  A 1996 Act and an ordinance enable Liechtenstein private 
companies to be accredited as testing, inspection, calib ration, and certification bodies.  This is done by 
the Liechtenstein Accreditation Body whose work is based on ISO Standards.  Currently there are 
three accredited bodies in Liechtenstein:  one for quality managing systems, one for environment 
management systems, and one inspection body. 
78. The Liechtenstein 1995 Act on the marketability of goods, as amended in 20 04, stipulates that  
goods produced either in conformity with Swiss or the EEA regulations may be sold in Liechtenstein.  
In practice, EEA originating non-agricultural pro ducts that do not comply with Swiss regulations, 
such as medicinal products, may be imported to Liechtenstein under the MCSM (Box II.1).   
79. Liechtenstein has signed MRAs in rela tion to conformity assessments with, inter alia , the 
other EEA EFTA countries, Australia (in force since July 2000), Canada (January 2001), 
New Zealand (March 2000), Switzerland, and the United States (March 2006).  The agreements 
signed with the Czech Republic (November 2003), Hungary (December 2003), Latvia (December 2003), Lithuania (March 2003), and Sloven ia (February 2004) were suspended upon their 
accession to the EC on 1 May 2004. 
80. There are no border controls to check complian ce with standards and technical regulations.   In 
Switzerland, ultimate responsibility for ensuring that  the product meets the applicable technical 
regulations lies with the producer or the importer, as soon as the product is placed on the Swiss market.  Market surveillance (i.e. spot checks of  merchandise) by the competent authorities ensures 
that technical requirements are effectively met. 
(b) Labelling, marking, and packaging 
81. As in the case of standards and technical re gulations, harmonization of labelling, marking, 
and packaging requirements with those of its major trading partners is a key element of Switzerland's 
policy.  Its requirements apply mostly to food pro ducts, products containing genetically modified 
organisms, and technical appliances.
78  A major change since 2004 has been labelling requirements 
for chemicals (Table III.6).  
82. False descriptions are strictly prohibited.  As  a general rule, the label and  packaging for 
consumer goods must indicate the specific name of the product (in French, German, and/or Italian)79, 
metric measure, sales or unit price80, weight of each component in the case of mixed products, and 
ingredients and additives in decreasing order of weight.  In addition to the standard information, labels 
on biological (or eco) products must show the name and address of the producer, and indicate 
"organic/biological product".81  Imports of meat and eggs (fresh  or cooked), produced in a manner 
prohibited in Switzerland, must be labelled as su ch.  The banned production methods, which must be 
                                                      
78 The labelling requirements for food and other goods are mainly laid down in the Ordinance on 
foodstuffs and basic commodities (RS 817.02), in force since 1 May 2002 and last reviewed on 1 April 2008;  as 
well as in RS 817.022.21.  Requirements for technical appliances are contained in RS 819.11, in force since 1 June 1995 and last reviewed on 7 May 2002.   
79 RS 944.0.   
80 RS 942.211.   
81 RS 910.18.   WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 60 
 
 
labelled, include the use of  hormones, antibiotics and other antimicrobial substances as performance 
stimulators (for meat), and rearing of hens in battery cages (for eggs).82 The labelling requirements 
apply to the points of sale to the final consumers,  both in retail trade and in establishments where 
meals are prepared for the public, such as restaurants.83  Cigarettes may be imported only in packages 
labelled with the retail price in Swi ss Francs and the importer's licence number.84 
Table III.6 
Changes in labelling requirements since 2004 
Area Changes  
Agriculture   
Ordinance of the DFI on the labelling and advertising of 
foodstuff s of  23 November 2005 (as at 1 April 2008) – 
RS 817.022.21 Pre-packaged foodstuffs must be labelled with, inter alia , the specific 
denomination;  the shelf life and the d eadline for consumption;  the country 
of production and an address;  a list of the main ingredients with their 
quantity (if any), and a mention of allerg en ingredients;  the alcohol content 
for alcoholic beverages, including sw eet alcoholic beverages;  and a 
declaration of products containing GMOs  
Article 16a of the Federal Law on agriculture (Agriculture 
Law, LAgr) of 29 April 1998 (as at 1 January 2008) – 
RS 910.1 As of 2006, the production methods for agricultural products must be 
indicated;  for instance, environmen tally and animal friendly production 
methods 
Ordinance on the terms "mountain" and "alpine pastures" 
of 8 November 2006 (as at 5 December 2006) – 
RS 910.19  Regulates the use of the designatio ns "mountain" and "high mountain 
pasture" for agricultural and proce ssed agricultural products of Swiss 
origin;  it does not apply to imports  
Ordinance on the labelling of poultry of 
23 November 2005 (as at 27 December 2005) – 
RS 916.342 States the minimum requirements (age before slaughter, minimum areas, 
etc.) for the use of production methods  ("grown outdoor", etc.) for chicken 
and turkey meats.  It  ensures equivalence with th e relevant EC regulation 
Ordinance on the labelling of agricultural products 
stemming from production prohibited in Switzerland  of 
26 November 2006 (as at 1 January 2008) – RS 916.51 Organic Farming Ordinance of 22 September 1997 (as at 
1 January 2008) – RS 910.18 Imported meats, eggs, and meat and egg products obtained through 
production methods prohibited in Switzer land must be labelled as such.  
Prohibited productions methods in Swit zerland include the injections of 
hormones, antibiotics or any other an timicrobial substance so as to 
stimulate growth (for meat), and breedi ng hens in battery cages (for eggs).  
Imported meats from countries wher e regulations on production methods 
are similar to the Swiss regulations, are exempt from labelling  
Chemicals  
Ordinance on protection agai nst hazardous substances 
and preparations (Chemical Products Ordinance, OChim)  
of 18 May 2005 (as at 1 May 2007) – RS 813.11 
Ordinance on risk reduction related to the use of 
particularly hazardous substances, preparations, and objects (Ordinance on risk reduction related to chemical 
products, ORRChim) of 18 May 2005 (as at 
1 March 2008) – RS 814.81 Ordinance on the marketing and use of biocidal products 
(Biocidal Products Ordinance, OPBio) of 18 May 2005 
(as at 1 April 2007) – RS 813.12 Ordinance on the placing on the market of phytosanitary 
products (Ordinance on phytosanitary products, OPPh)  of 
18 May 2005 (as at 1 January 2008)–RS 916.161  Requirements have been adapted to the European standards and to new 
technical and scientific advances.  These new labelling requirements allow 
consumers to know about the potential dangers of chemical products 
Energy   
Ordinance on energy of 7 December 1998 (as at 
1 April 2008) – RS 730.01 The revised ordinance affected the ener gy label for cars.  The criteria for 
assigning a higher efficiency category for trucks have been strengthened.  A 
chart illustrates the quantity of CO 2 emission.  The label also indicates 
whether there is a particle filter for diesel cars.  A new annex on energy 
labelling for air conditioners was introduced Labels on household appliances and li ght bulbs must indicate their energy 
consumption 
Source: Information provided by the Swiss authorities. 
                                                      
82 RS 916.51.   
83 RS 916.51. 
84 RS 641.31.   Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
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83. Since 1 July 1995, ingredients derived from genetically modified organisms (GMOs) must be 
indicated on labels.   A threshold of 1% was introduced in 1999;  it was lowered to 0.9% in 2005 and 
explicitly limited to uninte nded residues.  Since then, unintende d presence of GMO-derived material 
below the threshold of 0.9% of the total weight , as well as purified materials derived from GM   
micro-organisms produced in contained systems (fe rmenters) used in food or food production, have 
been exempt from labelling.  However, the presence of 0.9% or more of the total weight, of compound feedstuff for animal consumption, and 0.9% or more of the total weight of inputs used for the production of feedstuff for animal consumption must be labelled.   
84. For safety, health, environmental, and cons umer protection considerations, as well as 
compliance with international and national standa rds, certain products are subject to further 
regulations.  For instance, new regulations regard ing the labelling of prod ucts containing caffeine 
were issued in 2006 on food safety grounds;  a wa rning must be written on the products containing 
more than 250 mg of caffeine per kg.
85 
85. Medicines, cosmetics, cleaning agents, electrical appliances, measuring and weighing 
devices, heating systems, pressure vessels, and motorcycles imported into and marketed in 
Switzerland are subject to additional labelling and p ackaging regulations, which have been notified to 
the WTO Committee on Technical Barriers to Trade.86  During the period under review Switzerland 
made 70 notifications to the WTO Co mmittee on Technical Barriers to Trade.87 
86. There are also packaging requirements in regards to customs valuation; imports are taxed 
generally on the basis of gross weight.  Unpacked  goods and those whose package is deemed not to 
provide "sufficient" protection against damage durin g transportation, are liable to an "additional tare" 
(section (ii)(a) above). 
87. Under the Customs Treaty between Liechtenste in and Switzerland, Liechtenstein applies 
Swiss marking, labelling, and packaging requirements. 
(c) Sanitary and phytosanitary measures 
88. Several laws and ordinances c onstitute the legal bases for establishing and implementing SPS 
measures in Switzerland (Table III.7).  Since May 2002,  steps have been taken to harmonize with the 
EC legislation.88   
89. In general, live animals and animal produc ts, may only be imported to Switzerland from 
countries that have a favourable animal disease stat us (according to OIE) a nd would not endanger the 
health of the Swiss human and animal population.89  Since the entry into force of the Agreement on 
Agriculture between Switzerland and the EC in 2002, Switzerland has applied EC sanitary and 
phytosanitary requirements.  As a result, imports, transit or exports of animals and animal products 
that do not comply with the relevant EC regula tions and/or do not originate from countries and (if 
applicable) premises accepted to export to the EC are not allowed by Switzerland and Liechtenstein.  
These shipments must be accompanied during import to or transit through Switzerland and 
Liechtenstein by an EC health certificate.  All im ports of animals and animal products from countries 
                                                      
85 WTO document G/TBT/N/CHE/73, 30 August 2006. 
86 WTO documents G/TBT/CHE/40-97, July 2004-February 2008. 
87 WTO documents G/TBT/CHE/40-97, July 2004-February 2008. 
88 RS 0.916.026.81.   
89 For further details on the current import conditions , including restrictions, see Federal Veterinary 
Office online information, "Import of live animals and products of animal origin". Viewed at:  http://www.bvet.admin.ch/ein_a usfuhr/index.html?lang=en. WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 62 
 
 
outside the EC are checked for compliance with thes e requirements.  A permit is required for products 
covered by the Convention on International Trade in Endangered Species of Wild Fauna and Flora 
(CITES).  Switzerland is planning to adopt the acquis communitaire  with respect to veterinary border 
controls as of 2009, and from then on, checks will onl y occur during the first entry into the veterinary 
space of EC-Switzerland.  All consignments are ch ecked, irrespective of the country of origin.  
However, for countries with which a bilateral equiva lence agreement on sanitary  measures is in place, 
the frequency of physical controls is reduced. 
Table III.7 
SPS legislation, 2008  
Legislation Entry into force (as at) RS No.   
Federal Law on technical barriers to trade  6 October 1995 (7 May 2002) 946.51 
Federal Law on agriculture  29 April 1998 (1 January 2008)  910.1 
Ordinance on organic farming and th e labelling of organically produced 
products and foodstuffs  22 September 1997 (1 January 2008) 910.18 
Ordinance on the protection of plants  28 February 2001 (1 January 2008) 916.20 
Ordinance of the Federal Office of  Agricutlure (OFAG) on temporary 
phytosanitary measures  25 February 2004 (1 March 2005) 916.202.1 
Ordinance on the production and placing on the market of feedstuffs  26 May 1999 (1 January 2008) 916.307 
Law on epizootics  1 July 1966 (13 June 2006) 916.40 
Ordinance on epizootics  27 June 1995 (1 April 2008) 916.401 
Ordinance on the import, transit, a nd export of animals and products of 
animal origin 18 April   2007  (1 June 2008)   916.443.10  
Ordinance on the import and transit by air of animal s from third countries  18 April 2007 (1 June 2008)  916.443.12  
Ordinance on the import and transit by air of products of animal origin from 
third countries 18 April 2007 (1 June 2008) 916.443.13  
Federal Law on foodstuffs and basic comm odities 9 October 1992 (1 April 2008) 817.0 
Ordinance on foodstuffs and basic commod ities  23 November 2005 (1 April 2008) 817.02 
Ordinance on the import, transit, and export of foodstuffs and basic 
commodities  1 March 1995 (30 April 2002) 817.41  
Federal Law on the protection of animals  9 March 1978 (13 June 2006) 455 
Ordinance on the protection of new plant va rieties  11 May 1977 (5 December 2006) 232.161 
Federal Law on non-human gene technology   31 March 2003 (13 June 2006) 814.91 
Federal Law on fishing  21 June 1991 (1 January 2008) 923.0 
Ordinance on the conservation of species  18 April 2007 (1 July 2007) 453 
Convention on International Trade in Endangered Species of Wild Fauna 
and Flora  1 July 1975 (13 September 2007) 0.453 
Federal Law on hunting and the protection of wild ma mmals and birds 20 June 1986 (1 January 2008) 922.0 
Source:  WTO Secretariat;  and information provided by the Swiss authorities.  
90. Imports of plants and plant pr oducts require a phytosanitary certificate.  Switzerland and the 
EC mutually recognize their respective regulations on plant health.90  The regimes governing plants, 
plant products, and other items are frequently revi sed according to the phytosanitary situation in 
Switzerland and abroad.  The Federal Office for Agriculture (OFAG) may take various emergency 
measures, such as sanitary certificate requirements or total prohibition of imports in cases where new quarantine organisms appear;  however, it must promptly submit such measures to the Federal 
Council for approval.
91  Plant-related phytosanitary border ch ecks in Switzerland are only carried out 
at international airports;  the checks apply to all im ports (not at random).  According to the authorities, 
the main reason for imports being refused entry h as been the non-presentation of a valid phytosanitary 
cerfificate (more than 95% of cases);  the import volumes concerned are negligible. 
                                                      
90 Annex 4, Article 2.3 of RS 0.916.026.81. 
91 RS 916.202.1. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
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91. The Forest Division of the Federal Office for the Environment (FOEN) is responsible for 
issuing the certificates required to import and expor t forest reproductive material.  The purpose of this 
measure is to ensure the use of healthy and appr opriate forest reproductive material at the time of 
reforestation.  The regulations cover tree varieties that are important for Swiss forestry (11 varieties of 
conifer and 31 varieties of leaf-bearing trees). 
92. In order to prevent the introduction of new pests that are dangerous for forestry, the 
Ordinance on the protection of plants contains a lis t of forest products who se importation is prohibited 
or that require a phytosanitary certificate.  These include products under HS Chapters:  6 (live trees 
and other plants; bulbs, roots and the like; cut flow ers and ornamental foliage);  14 (bark and bark 
products);  25, 31, and 38 (soil and other subs trates for cultivation);  and 44 (wood and wood 
products).92  According to the authorities, these phytosan itary measures are in conformity with the 
FAO International Convention and the recomme ndations of the European Plant Protection 
Organization (EPPO).93 
93. Switzerland has a strict regulatory regime for agricultural biotechnology products.94  T h e  
Federal Law on non-human gene technology (Gen e Technology Law, LGG), which regulates the use 
of genetically modified organisms (GMOs) in food production and of goods for daily use, entered into 
force on 1 January 2004.95  The LGG defines the term "GMO-p roduct" in general, but the term 
"GMO-product" for matters related to foodstuffs is defined in the Ordinance on genetically modified 
foodstuffs.96  The distinction is no longer made betw een products derived directly from GMOs 
(i.e. first generation products such as corn starch) and products obtained by chemical modification of 
a first generation product (i.e. sec ond generation products such as glucose/fructose syrup from corn 
starch).97  According to the law, any person handling GM Os used in food or in goods for daily use 
must take steps to prevent mingling of living GMOs with non-GMOs;  labelling of GMO-derived 
foods must ensure adequate consum er information (section (b) above).98  The use and 
commercialization of GMOs must be authorized by the competent Federal authorities.  However, as a 
result of a 2005 public referendum, cultivation of GM Os, and imports of genetically modified animals 
were banned for a five-year period until 2010.99   
94. As mentioned, imports of meat and eggs (fresh  or cooked), produced in a manner prohibited 
in Switzerland, must be labelled accordingly (sec tion (b) above).  These banned production methods 
include the use of hormones, antibiotics and other antimicrobial substances as performance stimulators (for meat), and rearing of hens in battery cages (for eggs).
100   
95. Under the Agreement on Agriculture between Sw itzerland and the EC, in order to facilitate 
trade and harmonize customs procedures and mutual access to the EC and Swiss markets,  all consignments of plant products (except where th e CITES regulations must be fulfilled) must be 
accompanied (since 1 April 2004), by the same phyto sanitary document, a "plant passport".  Since 
                                                     
 
92 WTO document G/LIC/N/3/CHE/4, 8 August 2002. 
93 WTO document G/LIC/N/3/CHE/4, 8 August 2002. 
94 RS 910.18. 
95 RS 814.91;  and WTO documents G/TBT/N/CHE/40, 30 July 2004 and G/SPS/N/CHE/37, 
29 July 2004.   
96 RS 817.022.51. 
97 WTO document G/TBT/N/CHE/60, 10 January 2006. 
98 WTO documents G/SPS/N/CHE/37, 29 July 2004 and G/SPS/N/CHE/38,  1 September 2004. 
99 WTO document G/TBT/N/CHE/61, 11 January 2006;  and GMO-free Europe online information, 
"Anti-GMO Moratorium until 2010".  Viewed at: http://genet.iskra.net/eswitzerland [8 April 2008]. 
100 RS 916.51.   WT/TPR/S/208/Rev.1 Trade Policy Review 
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1 February 2007, animals and animal products or iginating in third countries may enter Switzerland 
with health certificates granted on the basis of the EC regime, including its relevant legislation.101  
96. The Swiss enquiry point for SPS matters is the Swiss Association for Standardization (SNV).  
The national notification authority is the SECO.  Switzerland is a member of the World Organisation 
for Animal Health (OIE), the International Plan t Protection Convention, and CODEX Alimentarius. 
Switzerland is also member of the EPPO.  Liech tenstein became a member of the OIE on 
1 January 2008. 
97. Switzerland systematically notifies to the WTO all proposed changes in domestic sanitary and 
phytosanitary measures that may have an impact on trade.  During the period under Review, it has 
made 34 notifications to the Committee on Sanitary and Phytosanitary Measures.102  In August 2006, 
Switzerland notified to the WTO that as of July 2007, it would start harmonizing its sanitary regulations on imports, including transit, with t hose of the EC.  Since then, it has harmonized its 
sanitary restrictions on the transit, import, a nd export of live birds with those of the EC.
103 
98. Under the Customs Treaty between Liechtenstein and Switzerland, Liechtenstein applies the 
Swiss SPS regime. 
(xi) Government procurement 
99. Switzerland and Liechtenstein are signatori es to the WTO Plurilateral Government 
Procurement Agreement (GPA), which remains the main framework regulating purchases by their central governments, subterritorial (e.g. cantonal and municipal) entities, and utilities. 
100. Switzerland's commitments under international agreements on public procurement have been 
transposed into its national law at  the federal level (central administration), and at the sub-federal 
level (cantonal and municipal).  At  the federal level, the GPA was in tegrated into the Swiss federal 
legislation through  the 1994 Federal Law on governme nt procurement (as at 1 January 2008) and its 
1995 Ordinance, which sets detailed rules for procur ement below and above GPA thresholds.  At the 
sub-federal levels, the 26 Swiss cantons operate under the 1994 Inter- cantonal Concordat (agreement 
revised in 2001) on government procurement, and its executive directives.
104  Switzerland's 
commitments under the GPA are not extended to pr ocurement by the federal railways and the Swiss 
Post.  Exclusions from coverage, on security gr ounds are also possible for procurement by state-
owned enterprises.  Switzerland made reservations on the application of the GPA to other signatories 
who had not extended comparable  and effective access in certa in activities to Swiss firms.105  In the 
ongoing negotiations on public procur ement, in 2006 Switzerland made an initial offer, which would 
further liberalize its govern ment procurement regime. 
                                                      
101 WTO document G/SPS/N/CHE/52, 17 August 2006. 
102 WTO documents G/SPS/N/CHE/36/Rev.2-70, July 2004-October 2007. 
103 WTO documents G/SPS/N/CHE/52, 17 August 2 006 and G/SPS/N/CHE/52/A dd.1, 2 October 2006. 
104 Accord inter-cantonal sur les marchés publics  (AIMP), 25 November 1994/15 March 2001.  The 
Concordat was revised in 2001 and its revision entered into force on 1 January 2002. 
105 The reservations apply to,  inter alia :  Canada (regional bodies, entities in the water, electricity, local 
transport, airports and ports subsector s, as well as certain services subsectors);  the United States (communal 
bodies and water, local transport, airports and ports en tities, as well as certain services subsectors and challenge 
procedures);  Japan (communal bodies, electricity and local transport entities, as well as challenge procedures);  
the Republic of Korea (communal bodies, airports and local transport, and challenge procedures);  Israel 
(communal bodies, local transport, certain services su bsectors, and challenge procedures);  and Singapore 
(communal bodies, water, and electricity entities).  For details, see WTO (2004). Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 65 
 
 
101. According to the authorities, the cantonal and the federal laws are harmonized to a large 
extent.  The Confederation-Cantons Commissi on on Government Procurement (Commission des 
marchés publics Confédération-Cantons, CMCC) is responsible for coordina ting the implementation 
of Switzerland's international commitments at the fe deral and sub-federal leve ls, and of ensuring that 
they are respected and implemented.106  In addition, the 1995 Federal Law on the internal market 
provides for non-discrimination in public pr ocurement at cantonal and local levels.107  T h e  
procurement regime at the federa l level is under revision with a vi ew to implementing the provisions 
of the 2006 revised GPA and to meeting the four main objectives of:  modernization (e.g. through       e-procurement), "clarification", increased "flexibilit y", and further harmonization of the federal and 
cantonal legislation. 
102. The Swiss legislation covers purchases of goods and services and projects related to 
construction and civil engineeri ng.  The law does not apply to, inter alia , the purchase of weapons and 
defence projects.
108  The law provides exclusions for postal  services, which are not covered by the 
GPA109;  and for railway services that are not covered by the Bilateral Agreement on Public 
Procurement with the EC.110  Nonetheless, all these purchases are regulated by Section 3 of the 
Ordinance on government procurement of 11 December 1995.111  The Swiss legislation provides for, 
inter alia , periodic adjustments to definitions and thre shold values to the relevant GPA provisions. 
103. Special provisions (including on thresholds) are stipulated in the law for public and private 
enterprises that have a dominant position in th e Swiss market.  The Federal Law on government 
procurement also covers certain activities carried out  by public entities under control or influence of 
the Swiss state (i.e. organizations in which the Fe deral Government holds the majority of shares or 
where more than half of the members of the manage ment or supervisory boards are representatives of 
the Federal Government), or by private entities with special or exclusive rights to provide a service throughout the Swiss territory.  These activities or iginally included the provision of public 
telecommunication services, the construction or  operation of railway facilities by CFF, and 
generation, transmission, and distribution of electricity.
112  If conditions are met for free access by all 
suppliers, and for international competition in, th ese markets (or segments thereof) are met, the 
Federal Department for the Environment, Tran sport, Energy, and Communications (DETEC) may 
partially or totally exempt the industry or sect or from the Federal Law on government procurement.113  
These exemptions are based on recommendations made by the Federal Competition Commission.114   
104. For contracts below the thresholds, procuring entities may use limited tendering, tendering by 
invitation (of three potential suppliers ), open tendering, or selective tendering.115  For contracts 
reaching the international agreed thresholds, the pr ocuring entity must use open, selective or limited 
tendering.116  Contracts must be awarded to the suppl ier that has presented the most economically 
advantageous offer, closest to th e criteria specified in the tender do cumentation.  Neither the law nor 
the ordinance provide for preferential treatment for Swiss suppliers.  Complaints against the federal 
                                                      
106 The CMCC comprises an equal number of repres entatives from the Confederation and from the 
cantons. 
107 RS 943.02. 
108 Article 3  of RS 172.056.1. 
109 Article 2 of RS 172.056.1. 
110 Article 2 of RS 172.056.11.  
111 Articles 32-36 of RS 172.056.11. 
112 Article 2a of RS 172.056.11. 
113 Article 2b of RS 172.056.11. 
114 RS 172.056.111. 
115 Article 36 of RS 172.056.11. 
116 RS 172.056.1. WT/TPR/S/208/Rev.1 Trade Policy Review 
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entities, related to public procurement, may be lodg ed with the Federal Administrative Court (TFA), 
which replaced the Federal Comm ission of Appeal (CRM) in the field of public procurement on 
1 January 2007.  The TFA's decisions may be app ealed to the Federal Supreme Court (FSC).  At 
cantonal level, administrative tribunals are compet ent to deal with complaints arising from tendering 
procedures, which can be appealed to the FSC. 
105. In 1999, Switzerland concluded a bilateral ag reement on government pr ocurement with the 
EC, which has been in force since June 2002.  This agreement filled the gap between the scopes of the 
GPA and the EEA.  It provides for extension of the GPA to purchases by communes, the railways, 
telecommunications utilities, and entities active in the field of energy other than electricity; and to 
private entities operating on the basis of special or exclusive rights in connection with drinking water, 
electricity, airports, ports, a nd urban and cable transport.117  On the grounds of the criteria listed 
above, the telecommunication subsector was exempted from the scope of the agreement, by the Swiss 
authorities upon its entry into force, and by the EC Commission (for most Members) in May 1999.  In 2007, transportation of goods by rail was also exempted.  A best-endeavour clause encourages 
purchasers not to discriminate against suppliers from other parties to the agreement in procurement 
below the relevant threshold values. 
106. The free trade agreements with Chile and Mexi co also contain market-access commitments in 
regard to public procurement.  Under the EFTA , agreements on public procurement are being 
negotiated with Colombia and Peru, and with the countries of the Gulf Cooperation Council (GCC). 
107. In Switzerland, total public spending at all levels of government on goods, services, and 
construction amounted to about Sw F 34 billion in 2007, representing 25% of total public spending.  
The total was shared between the Confederati on (19%), cantons (38%), and communes (43%). 
108. In Liechtenstein, in addition to the GPA, public  procurement is governed by the relevant EEA 
rules and the EFTA Convention (e.g. the threshold va lues are those set by the EEA).  The Department 
of Public Procurement, under the Office of the Prim e Minister, is responsible for procurement.  In 
2005, the 1998 Act on Public Procurement was sepa rated into the 2005 Act on the Procurement of 
Utilities (i.e. public works contracts, and supply and se rvices contracts in water, energy, transport, and 
telecommunications), and the 2005 Act on Public Proc urement (for all the other public purchases).  
These laws apply to public purchases, and to project s jointly undertaken by public and private entities 
when the financial contribution of the public c ontracting entity exceeds 50%.  According to the 
2005 Public Procurement Act, open tenders are the rule to assign contracts.  Contracts above the 
threshold are awarded according to international rules;  they are announced in the EC electronic 
government procurement system.   
109. Selective tenders are used for architectural service s.  For contracts below the threshold, public 
utilities are usually purchased through tenders by invita tion;  otherwise, relevant international rules 
apply.  Under the two laws, contracts are awarded according to the most economically advantageous 
tender or to the tender with the lowest price.  Additional criteria, such as quality, qualifications of 
personnel, and training, may also be  taken into account.  There are no de jure  preferences for local 
suppliers.  A joint declaration by Liechtenstein  and certain neighbouring Swiss cantons enables 
suppliers from the latter to participate in tenders  (on a reciprocal basis) for purchases below the 
threshold values.  Complaints related to public  purchases may be lodged with the Government, the 
Administrative Court, or with the EFTA Surveillance Authority if EEA provisions are concerned.  In 
2006, public procurement by the Liechtenstein G overnment, the communities, and companies with 
                                                     
 
117 Federal Department of Economic Affairs online information, "Public procurement market".  Viewed 
at:  http://www.europa.admin.ch/themen/00500/00506/00521/index.html?lang=en [20 March 2008].  Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 67 
 
 
exclusive or special rights (i.e. the public transport company, water distribution company, and the 
post) amounted to €74 million, up from €62 million in 2004.   
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Export procedures 
110. Similar registration and documen tation requirements apply to importers and exporters in 
Switzerland and Liechtenstein.  An export declara tion is required for statistical purposes (regardless 
of the type of product and its des tination).  Goods must be exported within one day of submission of 
the customs declaration.  Goods that have been de livered to a duty-free or customs warehouse must be 
exported within six months of the exporter's submission of the customs declaration.   
(ii) Export prohibitions, restrictions, and licensing 
111. Switzerland and Liechtenstein continue to main tain export controls on certain products on 
grounds of safety, security, and environment, and to  ensure compliance with international obligations 
under treaties and conventions to which they are si gnatories (e.g. the Basel Convention on the control 
of transboundary movements of hazardous wastes and their disposal, CITES118, the Convention on 
Chemical Weapons, the Rotterdam Convention on the Prior Informed Consent Procedure for certain 
hazardous chemicals and pesticides in intern ational trade (PIC-Convention), the Stockholm 
convention on Persistent Organic Pollutants (POPs- Convention), the Montreal Protocol on substances 
that deplete the ozone layer, and the Treaty on Nuclear Non-Proliferation).    
112. As in the case of imports, export prohibitions a nd restraints may be put in place in accordance 
with economic sanctions stipulated by the UN Secu rity Council.  In Switzerland, the sanctions are 
implemented by ordinances, which are based on the Federal Law on the application of international 
sanctions of 2003 (RS 946.231).119  Switzerland may, on a case-by-case basis, also implement 
economic sanctions applied by the EC.120  Liechtenstein implements UN Security Council Resolutions 
and aligns itself with the EC Common Positions on Foreign Security (CFSP) in regard to export 
embargoes.121   
113. The Federal Law on external economic measures al lows Switzerland to keep exports of goods 
and services under surveillance, to  impose special export authorization requirements, to limit or 
prohibit exports, if trade partners take any measur es or if there are any ex traordinary events in a 
foreign country that affect the Swiss economy.122  A decisions to take any such  measures is  made by 
the Federal Council, based on petitions by the Federa l Department of Economy.  Prior to taking a 
decision, harmful effects of events on the Swiss national economy must be id entified by the relevant 
                                                      
118 The Federal Veterinary Office issues CITES permits for (re-)exports of species that fall under the 
Convention, if the app licant provides evidence for their legal acquis ition (according to CITES).  The species that 
require CITES permits are listed in the CITES Appendices  I – III.  Viewed at:  http://www.admin.ch/ch/d/sr/ 
c0_453.html. 
119 During the review period, new sanctions were adopted by the Swiss Federal Council, based on UN 
Security Council resolutions, against:  Côte-d'Ivoire (2005);  Sudan (2005);  the Democratic Republic of the 
Congo (2005);  certain persons in connection with the k illing of former Lebanese Prime Minister Rafiq Hariri 
(2005);  the Democratic People's Republic of Korea (2006);  Lebanon (2006);  and Iran (2007). Based on EC 
decisions, the Federal Council has adopted new sanctions against Uzbekistan and Belarus (both in 2006). 
120 For an overview of all ordinances related to  sanctions currently in force, see SECO online 
information, "Sanctions/Embargo: Sanctions de la Suisse".  Viewed at:  http://www.seco.admin.ch/ 
themen/00513/00620/00622/index.html?lang=fr [4 March 2008]. 
121 Information provided by the authorities. 
122 RS 946.201.  WT/TPR/S/208/Rev.1 Trade Policy Review 
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governmental bodies in cooperation with the affect ed industry and possible counteractive measures 
are evaluated.  However during the period under review, no measures based on this regulation have 
been taken. 
114. Under international disarmament and non-pro liferation treaties, and multilateral export 
control regimes, Switzerland and Liechtenstein mainta in export controls on wa r material, and dual-use 
goods that might be used in the production of  conventional weapons and weapons of mass 
destruction.123  The authorities note that the pertinent laws and ordinances have undergone a number 
of modifications since 2004, but basic objectives have remained the same.  All exports of war material 
from Switzerland need a valid export licence, which is issued by the SECO.  Exports of rough 
diamonds to countries that are not participants in the Kimberley Process Certification Scheme are 
prohibited.124  
(iii) Export taxes, charges, and levies 
115. Export duties may be levied on goods listed in the "export tariff" schedule, to guarantee the 
national supply (48 tariff lines at the HS eight-digit level).  Nonetheless, no export duties were applied 
during 2004-08.  The Federal Council may reduce or  eliminate export duties if they are no longer 
necessary to ensure the domestic supply.  Howeve r, if a duty does not deter exports, the Federal 
Council may increase its rate as long as the "circumstances" so require.125  Such a provision would be  
maintained as long as exports need to be contained;  fo r instance, for steel scrap or non-ferrous metals.     
(iv) Duty and tax concessions 
116. Upon Customs Administration authorization, goods may be exported temporarily, exempt 
from all customs duties and other taxes (such as th e VAT), for processing or repair.  Exported goods 
may be re-imported duty free.126  In these cases, if export duties were paid they would be refunded.  
117. The alcohol taxes paid on alcohol products are refunded by the Swiss Alcohol Board when 
the goods are exported.127   
118. Tourists and non-Swiss residents may apply for reimbursement of the VAT on goods bought 
for their own use, of a minimum value of Sw F 300.128 
119. The same duty and tax concessions apply in Liechtenstein. 
(v) Export subsidies 
120. Switzerland continues to subsidize exports of agricultural products including dairy products, 
cattle and horses, fruit, potatoes, and processed produc ts (Chapter IV(2)).  The subsidies generally 
consist of price subsidies, or direct contributions to subsidize inputs, mainly those used by             
                                                      
123 The legal basis includes the Law on the control of goods usable for civilian and military purposes 
and specific military goods (RS 946.202), and the relate d ordinances (RS 946.202.1 and 946.202.21);  and the 
Law on war material (RS 514.51) and its ordinance (RS 514.511). 
124 RS 946.231.11. 
125 RS 632.10.   
126 RS 631.0.   
127 Swiss Alcohol Board online information, "Import/E xport".  Viewed at:  http://www.eav.admin.ch/ 
themen/einfuhr_ausfuhr/index.html?lang=en [15 April 2008]. 
128 RS 641.201.41. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
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agri-industries under the Price Compensation Mechanism (Chapter IV(2)).129  In 2006, the latest year 
for which data were notified to the Committee on Agriculture, export subsidies outlays remained 
below the agreed maximum levels for all products.130  As part of the ongoing agricultural reforms, 
export subsidies for basic agricultural products  are to be phased out by January 2010. 
121. Total production of cheese amounted to 172,914 to nnes in 2006, of which 50,945 tonnes were 
exported.  Since 2004, only cheese (HS 0406.10, 0406.20, 0406.30, ex 0406.40, and 0406.90) 
exported to non-EC countries is eligible for export subsidies.  The subsidy ranged from       
Sw F 0.60-1.80 per kg in 2005-06, and was reduced to Sw F 0.40-0.70 per kg in 2008.  Export 
subsidies granted to exporters of other dairy products (e.g. cream, skimmed milk powder and milk 
powder, yoghurt (flavoured or containing fruit, nuts,  or cocoa), and other dairy products) are based on 
the quantity (in kg) of whole milk used to manuf acture the products.  In 2005-06, the subsidy ranged 
from Sw F 0.29-Sw F 0.27 per kg of milk used.  In 2005, 24,577 tonnes of dairy products were 
subsidized, compared with 21,368 tonnes in 2006.    
122. The export subsidy for livestock consists of a fixed amount per animal (including cattle, 
horses, goats, and sheep) and a variable amount, whic h depends on the quality of the animal;  the 
subsidy was Sw F 1,170 in 2005 and Sw F 1,160 in  2006.  As of 2008, the subsidy ranged  from 
Sw F 100 for young sheep to Sw F 1,300 for 3- to 8-year old horses.  Subsidies are given to         horse-breeders who export breeds whose production is en couraged by the Confederation.  According 
to the authorities, the subsidy only covers some  160 head per year, while exports amounted to 
1,064 and 1,190 head in 2005 and 2006, respectively. 
123. Switzerland continues to subsidize exports of  seed potatoes and other potato products.  The 
subsidies are paid directly to the exporter.  Subsid ies are also available to exporters of cherries and 
other fruit products, in particular pip-fruit (e.g. appl es and pears) and juice concentrates.  The subsidy 
is a fixed sum per unit of weight, which is dete rmined according to "market conditions" (i.e. the 
difference between the domestic and the international market price), hence it varies on a yearly basis.  
124. Liechtenstein does not have an export subsidy re gime in place; nevertheless, it may benefit 
from Swiss export subsidies (Chapter IV(2)). 
(vi) Other export assistance 
125. Export promotion in Switzerland is through Osec's Business Network and through the 
provision of export risk insurance (Swiss Export Risk Insurance, SERV).  Switzerland follows the rules contained in the OECD's Arrangement on Officially Supported Export Credits
131 (and tied 
aid).132 
126. Under the SECO, Osec, the organization in char ge of export promotion, supports Swiss and 
Liechtenstein firms involved in expor t activities, in particular SMEs.133  Osec offers general market 
information on the different aspects of foreign ec onomic policies, provides advice on foreign markets, 
                                                      
129 Switzerland's latest notification to the WTO unde r Article XVI:1 of the GATT 1994 and Article 25 
of the Agreement on Subsidies and Countervailing Measures lists several export subsidies on agricultural goods (WTO document G/SCM/N/155/CHE, 11 July 2007). 
130 WTO document G/AG/N/CHE/42, 25 March 2006. 
131 The International Arrangement on Officially Supported Export Credits, also known as the Helsinki 
Arrangement or Helsinki Package, entered into effect on 15 February 1992, for the OECD member countries. 
132 OECD (2007b). 
133 The Government of Liechtenstein and individual co mpanies are members of Osec;  this allows these 
companies to use Osec's services. WT/TPR/S/208/Rev.1 Trade Policy Review 
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and helps firms to participate in trade fairs.  U nder the Federal Law on export promotion, the Federal 
Council must approve a specific budget for export promotion activities every four years134;  the budget 
for 2008-11 is Sw F 68 million.135  SERV is also instrumental in promoting exports from Switzerland, 
through the provision of export insurance in areas where private insurers are not active.136  
127. The Federal Law on Swiss insurance against export risks and its ordinance entered into effect 
in 2007 to replace the Federal Law on Guarantees against Export Risks of 1958.137  In 2007, the 
SERV replaced the Swiss Export Guarantee Agency  (ERG).  The SERV has taken over and extended 
the services formerly offered by ERG.  The insu rance offered by SERV enables Swiss exporters to 
accept export orders from countries where there is a risk of non-payment owing to political and 
economic uncertainty.  In addition, since 2007, SERV has been insuring private buyer risk.138  The 
introduction of private buyer risk insurance is aimed at increasing Swiss companies' ability to 
compete in international markets.139  The goods and services insured must be of Swiss origin, with 
local value-added of at least 50%.  SERV may, ex ceptionally, insure goods and services in which the 
foreign content exceeds 50%, but would charge a 2. 5% premium for each 5% increment in foreign 
content.140  In 2007, SERV insured export operations fo r a total of Sw F 3.5 billion, upon from 
Sw F 2.5 billion in 2006.  The increase was attributed to the introduction of the private buyer risk 
insurance. 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives and other assistance 
128. The Swiss Subsidies Law stipulates the main eligibility criteria and procedures to follow 
when granting subsidies at the federal level.141  Assistance is also granted at the sub-federal level.  The 
main types of support consist of financial transf ers and tax exemptions.  According to the Swiss 
Subsidies Law, subsidies granted by the central gov ernment must be examined periodically (every 
six years);  the examination is based on the budget positions of individual subsidies, with a focus on 
their efficiency and effectiveness. The latest Fe deral Council report on the ex amination of subsidies 
was published on 30 May 2008.142  It contains the results of the evaluation of some 230 subsidies (out 
of 360 subsidies), and concluded that some 70 s ubsidies programmes need to be discontinued or 
revised, either because they have become redundant due  to structural changes, or have been found 
inefficient to achieve the programme's goals.  In 2006, contributions to the old-age insurance, the 
disability insurance, health and social assistance accounted for 45% of total federal subsidies of 
Sw F 30 billion, followed by transport (18%), r esearch and development (15%), and agriculture 
(12%).  Taking into account all three levels of  state and after deduction of double counts due to 
contributions between the three levels, subsidies amounted to Sw F 21 billion each at the federal and 
                                                      
134 RS 946.14. 
135 Arrêté fédéral sur le financement de la promotion des exportations pour les années 2008 à 2011  
(No. 2141) of 18 September 2007. 
136 Swiss Export Risk Insurance online information, "Export promotion".  Viewed at:  http://www.serv-
ch.com/en/about-us/export-promotion/index.html [16 May 2008]. 
137 RS 946.10 and RS 946.101. 
138 Swiss Export Risk Insurance online information, "Insurance solutions for Swiss exporters and 
financing institutions". Viewed at:  http://w ww.serv-ch.com/en/index.html [15 April 2008]. 
139 Swiss Export Risk Insurance online information, "About us".  Viewed at:  http://www.serv-ch.com/ 
en/about-us/index.html [15 April 2008]. 
140 Swiss Export Risk Insurance online information,  "Foreign content".  View ed at:  http://www.serv-
ch.com/en/international/reinsuran ce/index.html [15 April 2008]. 
141 RS 616.1.   
142 Federal Department of Finance (2008b). Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
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cantonal levels, and Sw F 6 billion spent by the co mmunes.  Total subsidies, of Sw F 48 billion, 
represented some 9.9% of GDP. 
129. Switzerland's latest notification to the WTO, under Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Count ervailing Measures, distinguishes several types of 
federal assistance programme: for zones under economic  renewal, for mountain areas, for forestry 
activities, and for agriculture and food production.143  According to the authorities, the effect on trade, 
of the assistance granted to the industrial and forestry sectors through the notified programmes, is negligible or non-existent. 
130. Switzerland offers assistance to areas under economic renewal.
144  The purpose of the subsidy 
is to support private enterprises in order to create and maintain jobs in those areas.  Until mid-2006, 
the assistance, which is granted mainly to companies involved in manufacturing or to services linked to manufacturing in areas under renewal, took the fo rm of:  full or partial federal tax exemptions, 
federal loan guarantees, and subsidized loans.  Assistance through federal loan guarantees and 
subsidized loans was removed in June 2006 and January  2008, respectively.  In addition, the scope of 
activities covered by the assistance was reduced in January 2008.   
131. Assistance to mountain areas continues through the provision of long- and medium-term 
capital loans to small and medium-sized enterprises.  The subsidy does not relate to a specific product 
or sector;  this programme is of indefinite durati on.  Assistance to forestry activities consists of 
compensation to forest owners for services rendered to the public, such as th e maintenance of forest 
roads.  This assistance is attributed on a project basi s.  The duration per project is normally five years.  
Assistance to the forestry subsect or has declined since 2004, excep t for 2006 because of bad weather 
in 2005. 
132. Switzerland continues to subsidize agricultural products including dair y products, cattle and 
horses, wool, eggs, oilseeds, sugar beet, potatoes,  fruit, and other processed agricultural products 
(Table III.8).  Subsidies for the production of cook ing and re-solidified butte r have been gradually 
reduced  and will be phased out (Chapter IV(2)):   the subsidy for cooking butter was reduced from 
Sw F 2.74 per kg at the beginning of 2005 to Sw F 1.37-2.09 per kg in May 2005;  and for                
re-solidified butter from Sw F 4.06 per kg to Sw F 3.30 per kg during the same period.  In 2008, butter 
subsidies ranged from Sw F 0.20 and 1.49 per kg, de pending on the variety.  Price support for 
skimmed milk and skimmed milk powder is to be phased out (Chapter IV(2)).  The level of support 
varies during the year but the authorities claim that the subsidy is not seasonal.  A maximum subsidy 
of Sw F 0.6 million per year (Sw F 1.5 per tonne of transformed wool) is available to recognized 
organizations of sheep owners and wool processors.  Egg prices continue to be subsidized, in order to 
promote consumption of domestic eggs. 
133. Domestic producers of high-protein peas and fi eld beans receive a subsidy proportionate to 
the area under cultivation.  In 2005-06, the subsidy per hectare was Sw Fr 1,500 for field beans and 
high-protein peas, and Sw F 2,000 fo r fibre plant. There are two different types of subsidy for oilseeds 
(e.g. rapeseed, sunflower seed, and soybeans):  direct payments to the producer, which are 
proportionate to the area under cultivation (Sw F 1,500 per hectare);  and direct payments to the processing plants producing oil for human consumption and for other uses.  On 1 January 2009, these 
                                                     
 
143 WTO document G/SCM/N/155/CHE, 11 July 2007. 
144 The federal ordinance defines economic renewal areas as zones where, inter alia , the average 
income level is lower than the nati onal average;  the average unemploymen t rate exceeds the national average;  
the rate of job creation is lower than the national averag e;  and/or where the situation of the most important 
sector of the economy is unfavourable (RS 951.93 and RS 951.931.1). WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 72 
 
 
subsidies will be reduced to Sw F 1,000 per hectare for fibre plants, field beans, rape seeds, and other 
field products.145 
Table III.8 
Federal assistance, 2005-08 
(Sw F million, unless otherwise indicated) 
Outlays Programme/industry 
2005 2006 2007 2008 Legislation 
Assistance for zones under 
economic renewal     
Federal tax relief (partial or 
full) 103a 103a 103a 103a 
Interest subsidies on investment 
credits  0.6 0.4b n.a. n.a. 
Guarantees for investment 
credits 11.9 8.7 .. .. Federal Law on regional policy of 6 October 2006 (as at 
1 January 2008) – RS 901.0   
Ordinance on regional policy of 28 November 2007 (as at 1 January 2008) – RS 901.021   Ordinance on the granting of fiscal exemptions in implementation 
of reginal policy of 28 November 2007 (as at 1 January 2008) – 
RS 901.022 
Assistance for mountain and 
rural areas     
Losses on guaranteed loans 0.7 0.6 0.3 .. 
Contributions to interest 
servicing 0.2 0.3 0.2 0.2 Federal Law on the granting of credit guarantees and loan interest 
service contributions in mountain regions and rural areas in 
general of 25 June 1976 – RS 901.2.  This law was modified by the Federal Law on regional policy of 6 October 2006 – RS 901.0  
Forestry 155 173c 149 .. Federal Law on forests of 4 October 1991 –  RS 921.0 
Ordinance on forests of 30 November 1992 – RS 921.01 
Agriculture      
Milk and dairy products     
Butter 61.5 47.4 .. .. 
Skimmed milk and powder 40.1 39.0 .. .. Federal Law on agriculture of 29 April 1998 – RS 910.1  
Ordinance of the Federal Department of the Economy (DFE) on 
the amount of support for milk products and provisions on the importation of whole milk powder of 7 December 1998 – RS 916.350.21 
Ordinance on support for milk prices of 7 December 1998 – 
RS 916.350.2 
Wool 0.6 0.6 .. .. Federal Law on agriculture of 29 April 1998 – RS 910.1 
Eggs 2.5 2.4 .. .. Federal Law on agriculture of 29 April 1998 –  RS 910.1 
Ordinance on eggs of 26 November 2003 – RS 916.371 
Protein and fibre plants     
Field beans and high-protein peas 7.7 8.4 .. .. 
Fibre plant 0.5 0.5 .. .. Federal Law on agriculture of 29 April 1998 –  RS 910.1 
Oilseeds     
Payment to the producer (rape 
seed, sunflower seed, and soybeans) 36.2 34.1 .. .. 
Payment to processing plants 8.2 8.0 .. .. Federal Law on agriculture of 29 April 1998 – RS 910.1 
Sugar beet (Sw F '000) 28,800 26,300 .. .. Article 54 of the Federal Law on agriculture of 29 April 1998 – 
RS 910.1 
Potatoes     
Domestic use of potatoes 16.9 15.7 .. .. Federal Law on agriculture of 29 April 1998 – RS 910.1 
Domestic use of seed potatoes 2.3 2.2 .. ..  
..  Not available.  
n.a. Not applicable. a Estimate for 2003 (Federal Department of Economy (2005), Message concernant la nouvelle politique régionale (NPR), 
 No. 05.080, 16 November.  Viewed at:  http://www.seco.admin.c h/themen/00476/00496/00498/index.html?lang=fr).  No current 
 data is available. b Programme phased out at end 2006. 
c Increase due to expenditures incurre d because of the August 2005 storm. 
Source:  WTO document G/SCM/N/155/CHE, 11 July 2007;  and information provided by the Swiss authorities.   
                                                      
145 RS 910.17.  Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 73 
 
 
134. Since 2003, "compensation" has been granted to the two sugar refineries for having used, 
under a mandate of the Federal C ouncil, domestic sugar beet to produce 120,000 to 185,000 tonnes of 
sugar.  This programme is to be phased out on 30 September 2009 and is to be replaced by a direct 
subsidy to sugar-beet producers.  The c.i.f. pric e of imported sugar is taken into account when 
calculating the subsidy for each season.  The subsid y was Sw F 13 per 100 kg in 2005, Sw F 14 per 
100 kg in 2006, and Sw F 10 per 100 kg in 2008.  Production, storage, and transformation (dehydration) of potatoes are still subsidized in Switzerland.  Subsidies are also available to 
manufacturers of  fruit juices and fruit concentrates.   These subsidies are fixed sums per unit of 
weight (i.e. kg), which are determin ed according to "market conditions". 
135. Swiss Post receives an annual subsidy for the de livery of newspapers with subscription.  The 
annual subsidy was reduced from Sw F 80 million and fixed at Sw  F 30 million in January 2008. 
136. Government-financed or subsidized research and development programmes are also open to 
foreign companies with operations in Switzerland. 
137. Some cantons offer investment incentive programmes for domestic as well as foreign 
investors in particular in rural areas.  Priority is often given to foreign businesses that bring new high 
technology product lines.  The most common incentives are:  subsidies or loans by cantons for the 
development of industrial sites;  grants for in stitutions conducting research and development projects; 
subsidies to defray start-up costs and to finance st aff training; tax exemptions on profits and capital 
gains; and liberal depreciation allowances.  Ca ntonal guarantees on bank loans and capital loans at 
below-market interest rates  are still available but rarely used, according to the authorities.   There are 
also discrepancies in regard to the tax rates levied  in the different cantons.  For instance, corporate 
income tax ranges from 6% (in the cantons of Obwa lden and Appenzell Ausser Rhoden) to 24.5% in 
the canton of Basel-Stadt.   These tax differentials and tax exemptions granted by the different cantons 
are a means for them to compete for investment (Chapter II(5)(i)).
146   
138. Liechtenstein notified to the WTO that, with th e exception of agriculture subsidies, it did not 
grant or maintain any other subsidies that could oper ate directly or indirectly  to increase exports or 
reduce imports.147  Liechtenstein has no national assistance programmes.  In Liechtenstein, 80% 
(Sw F 15 million) of public transportation costs ar e financed with public funds.  Support is also 
granted to Liechtenstein Tourismus, a state institution in charge of promoting tourism 
(Chapter IV(5)(vi)(b)).   Liechtenstein has a special tax regime , with low tax rates, for foreign 
companies domiciled but not active in the country  (e.g. holding companies and captive insurance 
companies).  In addition, as a member of the EE A, Liechtenstein companie s are eligible for EC 
assistance programmes.148   
                                                      
146 The Federal Tax Harmonization Law (LHID) of 2001 refers to the harmonization of the tax basis 
and some assessment principles amongst the different cantons, but not to  the harmonization of rates.   According 
to the Federal Constitution (Article 129), the cantons remain free to set their own tax rates . 
147 WTO document G/SCM/N/123/LIE, 19 September 2006.  Due to the customs union between 
Liechtenstein and Switzerland, Switzerland's notification (WTO document G/SCM/N/123/CHE, 
12 January 2006) relating to agriculture subsidies also covers Liechtenstein. 
148 Liechtenstein is mainly a beneficiary of the programmes included in the 7th Framework Pogramme 
for Research, Technological Development and Demonstration Activities (2007-2013);  the Competitiveness and 
Innovation Framework Programme (CIP-Programme 2007-2013);  and Protocol 31 of the EEA Agreement.  
Liechtenstein's total contribution to the 7th Framework and to the CIP-Programme amounted to 
Sw F 19.93 million and Sw F 1.36 million respectively. WT/TPR/S/208/Rev.1 Trade Policy Review 
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(ii) State trading and state-owned enterprises 
139. The range of exclusive rights granted to public, semi-public, or private suppliers of goods and 
services has not changed significantly during the review period (Table III.9).  Certain semi-public companies, such as Swisscom, continue to enjoy de facto  exclusive rights (Chapter IV), and despite 
ongoing liberalization, dominant state-owned enterp rises (at the local level) remain in several 
subsectors, for example electricity distributio n and water management (Chapter IV).   
Table III.9 
State-owned enterprises and exclusive arrangements, 2008 
Goods/services Entity Coverage 
Switzerland    
Distilled beverages 
and spirits Federal Alcohol Board Exclusive import right s that may be conferred on the private 
sector 
Salt Monopoly jointly administered by the cantons Exclusive production and distribution rights 
Electricity production and supply Cantonal or local entities Production and supply of electricity, de facto  
Electricity 
transmission Swissgrid (majority public ownership) Exclusive rights for the operation of the Swiss high voltage 
electricity transmission system 
Water  Cantonal or local entities  Collection,  purification, and distribution of water 
Gas Swissgas;  regional entities;  Transitgas;  and 
SEAG  Swissgas:  gas import and gas transmission 
Regional entities:  regional gas distribution 
Transitgas:  international gas transit 
SEAG:  exclusive exploration and production rights for oil and gas in ten cantons (but no economically viable resources 
found yet) 
Telecommunication Swisscom (52% state ownership) De facto , some telecom services 
Rail transport Federal railways (CFF);  and other entities Pa ssenger transport services vi a rail, and operating railroad 
infrastructure 
Passenger transport by bus, tramway, cable, boat, etc. Cantonal or local entities Sche duled passenger transport 
Airport management Zurich International Airport (minority public 
ownership);  Geneva International Airport;  Europe Airport Basel-Mulhouse-Freiburg;  
and other entities  Services related to the management of airports  
Air traffic control  Skyguide  Exclusive manda te from the Swiss Confederation to supply 
civil and military air traffic control services 
Radio and television SRG SSR;  and private companies Gu aranteed and privileged access to wireless terrestrial 
broadcasting, and local cable TV networks built on a single licence 
Postal services Swiss Post (La Poste Suisse) Exclus ive rights to supply services related to delivering 
domestic and international inbound letters of up to 100 g 
Certain insurance 
services Cantonal entities;  and SUVA Cantonal entities:  exclusive rights to supply fire and natural 
damage to buildings insurance services 
SUVA:  exclusive rights to supply statutory workplace accidents insurance services in the industrial sector 
Certain banking 
services Cantonal banks (majority ownership by 
cantons);  and other banks  Exclusive rights to issue specific mortgage bonds ( Schweizer 
Pfandbriefe ) only through "issuing institutions" whose 
mortgage loans amount to at least 60% of their balance sheet (the issuing institutions are owned either by cantonal or 
private banks) 
Liechtenstein    
Electricity Liechtensteinische Kraftwerke (LKW) Produces, imports, and distributes electricity in Liechtenstein;  
also sets electricity prices 
A two-phase liberalization of the electricity market started in 
2002;  in the second phase (2005), the market was liberalized for all consumers.  At present, the electricity market is 
liberalized  
Table III.9 (cont'd) Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
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Goods/services Entity Coverage 
Drinking water  Gruppenwasserversorgung Liecht. Oberland  
Wasserversorgung Liecht. Unterland  Exclusive production and distribution rights (except industry 
and large customers)  
Exclusive production and distribution rights (except industry 
and large customers)  
Gas Liechtensteinische Gasversorgung (LGV) Imports and distributes gas in Liechtenstein.  At the time of 
the 2000 TPR, LGV held exclusive distribution rights over gas and set its price.  Since November 2003, the market for 
natural gas has been liberalized for big consumers (10 GW or 
more).  LGV continues to set pr ices for small consumers.  It 
owns the distribution net, but it has to offer the net to others 
according to a price controlled by the Energy Market 
Commission 
Telecommunications 
network Telecom Liechtenstein Fully state-owned company providing fixed-net services and 
responsible for network pl anning, operation, and 
maintenance.  De facto  monopoly 
Public transport 
services by bus Liechtenstein Busanstalt  Exclusive supply rights 
Postal services Liechtenstein Po st AG Exclusive rights over letters and direct mailing up to 50 g  
Note: Unless otherwise specified, Swiss entities listed ar e fully or to a very large extent, state owned. 
Source:  WTO Secretariat, based on information provide d by the Swiss and Liechtenstein authorities.  
140. The Swiss Alcohol Board (Régie fédérale des alcohols, RFA), under the responsibility of the 
Federal Department of Finance, is the only state- trading enterprise that Switzerland included in its 
latest WTO notification (in 2007).149  The Board is justified by the au thorities on public health reasons;  
it is aimed at reducing the production and consumption of spirits according to Article 105 of the Federal 
Constitution. 
141. Alcosuisse has the exclusive right (monopoly) to import ethanol containing at least 80% by 
volume of alcohol.  Imports of high-grade alcohol by the private sector are pos sible, subject to prior 
authorization by the Swiss Alcohol Board.  Ho wever, during 2004-06, there were no imports by 
private entities.150  Domestic production of ethanol and spirits (by industrial and professional 
producers, farmers, small producers) is carried out by the private sector under a concession.  Industrial 
distilleries and spirits producers may sell their products directly, subject to payment of the alcohol tax, 
levied on the quantity produced per litre of pure alcohol at Sw F 29.151 
142. Swissgas is a predominantly state-owned enterprise and the largest importer of gas in 
Switzerland; it does not have a monopoly on imports of  gas.  The other gas firms (regional and local) 
are also state-owned.  Switzerland imports all its gas.  As a result of the recent reform of the electricity subsector, the production but not the transmission of electricity was liberalized;  Swissgrid remains the exclusive owner and operator of the Swiss grid.  The SOTA  (Société coopérative pour 
l'achat du tabac indigène) buys all tobacco produc ed in Switzerland for commercial purposes.  It 
distributes the processed tobacco to cigarette, cigar,  and pipe tobacco producers, which are obliged by 
the law to also process the domestic tobacco harvest.
152  SOTA is financed by a tax of Sw F 0.13 on 
each cigarette sold in Switzerland. 
143. The importation and sale of various types of  salt in Switzerland remain under cantonal 
monopolies exercised through two companies153:  Saline de Bex SA owned mainly by the canton of 
                                                      
149 WTO document G/STR/N/10/CHE/Suppl.1-G/STR/N/11/CHE, 30 November 2007. 
150 WTO document G/STR/N/10/CHE/Suppl.1-G/STR/N/11/CHE, 30 November 2007. 
151 Swiss Alcohol Board online information, "Tax Rates".  Viewed at:  http://www.eav.admin.ch/ 
themen/besteuerung/index.html?lang=en. 
152 RS 641.31.  
153 Paragraph 4 of Article 94 of the Federal Constitution  (RS 101). WT/TPR/S/208/Rev.1 Trade Policy Review 
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Vaud, and Société des Salines suisses du Rhin ré unies SA owned by all cantons, except Vaud.  The 
cantons, through Salines du Rhin, also fix the price of salt, which includes a monopoly tax ( droits de 
régale ).154  This tax is imposed on imported and domesti cally produced salt;  in 2007, the total tax 
collected amounted to Sw F 3 million.155  
144. The Principality of Liechtenstein, al so a shareholder of Salines du Rhin156, is partially 
supplied by the company;  however, Liechtenstein is  not obliged to buy salt exclusively from Salines 
du Rhin. 
145. The Liechtenstein authorities have indicated that exclusive or monopoly rights in the 
electricity, gas, or telecommunication subsectors have been gradually reduced (Chapter IV).  
However, state-owned or private enterprises still hold exclusive rights or exercise monopoly power over the supply of public p assenger transport, rail transport, and certain postal services. 
146. Liechtenstein has not participated in the Swiss state monopoly on salt since 1995.  
Liechtenstein has replaced the monopoly with an excise duty. 
(iii) Competition policy and regulatory issues 
147. Limited competition is still a major reason for the high prices of many products and services 
on the Swiss market
157, although the 2003 reform of the Cartels Law strengthened the Swiss 
competition regime, in particular by introducing direct sanctions against the most serious 
infringements and a leniency programme.  The Swiss Competition Commission (Commission de la 
Concurence, Comco) has been given considerable new power to combat anti-competitive practices.  
However, it appears that the application of the co mpetition regime continues to be limited by legal 
and regulatory issues at the federal level. 
148. Legislation on competition has not changed subs tantially during the review period.  Four 
main laws continue to regulate competition:  th e Federal Law on cartels and other impediments to 
competition (LCart)158, amended in 2004;  the Federal Law against unfair competition159, amended in 
2002;  the 1995 Federal Law on the internal market (amended in 2006)160, and the 1985 Swiss Federal 
Law on price surveillance161, which allows price investigations by the Price Controller when 
competition is deemed to be lacking.162  In addition to Comco, various other Swiss authorities also 
deal with competition issues, including the Price Controller.163 
                                                      
154 RS 691 and RS 691.1. 
155 The tax rates are:  table salt in small boxes (1 kg/0.5 kg), Sw F 175 per tonne of salt;  industrial salt, 
Sw F 1 per tonne of salt;  de-icing salt, Sw F 1 per tonne of  salt;  all other types of salt, Sw F 5 per tonne of salt. 
156 Magazine Cargo , "Du sel pour la cuisine et la voirie", No. 1/2006 .  Viewed at:  
http://www.sbbcargo.com/fr/magazin0106_14_15_f.pdf [15 April 2008]. 
157 Surveillance des prix (2007). 
158 RS 251.   
159 RS 241.   
160 RS 943.02.   
161 RS 942.20.   
162 Other Swiss authorities that also deal with competition issues are the Federal Administrative Court, 
the Federal Supreme Court, the civil courts, the Federal Office for Communications (OFCOM), the Communication Commission (ComCom), and the Regulatory Authority for the Postal Service (PostReg).  
Viewed at:  http://www.weko. admin.ch/links/00181/index.html?lang=en [26 April 2008] 
163 The Price Controller issues an annual report to  the Federal Council (Surveillance des prix online 
information.  Viewed at:  www.monsieur-prix.ch);  and Competition Commission (2006). Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 77 
 
 
149. The Swiss Competition Authority consists of two bodies (a Secretariat and the Comco) 
responsible for enforcing the legislation.  The non-permanent commission (Comco) currently consists 
of 12 members, including the President and Vice-President, who are nominated by the Federal Council.  It also includes independent experts as well as representatives of various interest groups 
(e.g. industry, retail, consumer, labour, and agricu ltural associations).  Some members also hold 
positions on company boards.  The Secretariat carries out investigations and s ubmits the results to the 
Comco for decision.
164   
150. Amendments to the LCart entered into force on 1 April 2004.165  The law provided for a 
transitional period until 31 March 2005 to give firms time to adapt to the new system without being 
exposed to sanctions.  Among the main changes to  the Swiss competition regime, brought about by 
the amendment, are the possibility of imposing dire ct financial sanctions, of up to 10% of turnover 
(over three years)166;  the introduction of a leniency programme designed to encourage companies to 
report the activities of a cartel in which they have been participating;  and allowing, on grounds of 
efficiency, certain "agreements affectin g competition" for instance, among SMEs.167   
151. The amendment also stipulates new investiga tion procedures and requires Comco's members 
to declare their interests in a public register.  The legislative amendment also resulted in the 
modification of two ordinances on merger controls and emoluments.168  In addition, a new ordinance 
entered into force on sanctions for unlawful restriction of competition169;  it defines the method for 
determining sanctions and the application of the leniency programme provided for by the 2004 
amendment (Article 49a, al. 2 of LCart).   
152. The LCart applies to private and public enterprises that take part in a cartel, that behave in 
any way that affects competition, that have dominant market power, or that take part in mergers or acquisitions.  The LCart applies, in principle, to all anti-competitive arrangements, regardless of 
economic sector or the company's ownership.
170  However, exceptions to the application of the LCart 
include areas where the Federal Council may gr ant exceptional authorization on the grounds of 
compelling public interest, economic efficiency, or where other provisions of other laws restricting 
trade take precedence.  Examples of the latter include provisions that establish an official market or 
price system or entrust certain enterprises with th e performance of public interest tasks, and grant 
them special rights (e.g. agriculture, health care,  public transport, and network industries).   
153. LCart does not define the term "cartel" but instead uses the term "agreement affecting 
competition" as any binding or non-binding agreem ent and concerted practices between enterprises 
operating in the same or different market segments with the purpose or effect of restricting market 
competition. Such agreements are unlawful when they  significantly affect competition.  Agreements 
of "little importance" are not investigated by the Commission, but Comco does not initiate an 
investigation when agreements have a "restricted im pact" on the market.  In general, an agreement is 
                                                      
164 WTO (2004). 
165 LCart.  Viewed at:  http://www .admin.ch/ch/f/rs/251/index.html. 
166 Sanctions can be applied only to companies, and criminal penalties cannot be applied to natural 
persons.  For all other types of anti-competitive behavi our, sanctions are envisaged only if the decision to 
prohibit the anti-competitive behaviour is not respected (WTO, 2004). 
167 Article 6(1) of LCart contains a list of agreements that can be considered, by ordinance or notice, to 
be justified by efficiencies.  The amendment allows cartels affecting only an "insignificantly small market 
share".  
168 RS 251.4 and RS 251.2. 
169 RS 251.5. 
170 For further details on the types of "agreements affecting competition" that are illicit under LCart, see 
WTO (2004). WT/TPR/S/208/Rev.1 Trade Policy Review 
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considered to have a restricted impact on the market when the cumulative market share of all 
enterprises involved do not exceed 10% (horizontal agreement) or when the market share of each 
enterprise does not exceed 15% (vertical agreement) .  Agreements between "m icro-enterprises" (with 
fewer than ten employees and an annual turnover of  less than Sw F 2 million) are deemed not to 
significantly affect competition.  These "safe harbours" do not  apply to hard-core cartels.  The LCart 
regards horizontal and vertical hard-core car tels as particularly serious violations.171  Participation in a 
hard-core cartel is not illegal per se ;  however, the LCart presumes elimination of competition, and 
therefore illicit behaviour, when a horizontal agreem ent has the effect of fixing price directly or 
indirectly, restricting output or allocating territories  (Article 5 al. 3, LCart), and when a vertical 
agreement has the effect of  fixing or setting minimum resale prices, as well as, in regard to the 
distribution agreements, contracts with an absolute  territorial protection (Article 5 al. 4, LCart). 
154. The revised LCart amends the definition of the concept of dominant companies:  a company 
is considered to be in a dominant position when  it can behave in an essentially independent manner 
vis-à-vis  the other market participants (Article 4 (2 )).  According to the amendment, independence 
must be measured both in relation to direct comp etitors and to purchasers and suppliers.  The LCart, 
as amended does not prohibit dominant position, but only its abuse.172  However, a merger that would 
create or strengthen a dominant position, or abso lutely suppress "effective competition" may be 
prohibited. 
155. The revised LCart also contains a preventive me rger control.  Mergers and acquisitions must 
be notified to the Comco if, during the most recent financial year prior to the proposed transaction:  
(i) the enterprises concerned reported joint turnover  of at least Sw F 2 billion, or of at least 
Sw F 500 million in Switzerland;  and (ii) at least  two of the enterprises concerned reported individual 
turnover in Switzerland of at least Sw F 100 million.173  Notification is also required, if a decision by 
the Comco establishes that one of the participati ng firms occupies a dominant position in a market in 
Switzerland and when the concentration concerns either that market or an adjacent market or a market 
upstream or downstream. 
156. In 2007, the Comco issued a Communication on ve rtical agreements, which entered into force 
in 2008;  the aim is to harmonize Swiss and EC law.174  As a result, vertical agreements (distribution 
contracts) that are legal under European law are now also legal in Switzerland.  Therefore, the former 
practice of imposing higher prices in the Swiss market is no longer permitted.  The Communication contains criteria to evaluate, if necessary on a case-by-case basis, any recommendation to impose a 
significant price difference between Swiss and forei gn prices.  According to the authorities, the 
application of provisions contained in this notice h as been instrumental in the adjustment of Swiss 
prices towards the European level. 
157. As a result of the full implementation of the amended LCart, the competition authorities had 
to deal with more cases in 2006 and, due to the stri cter provisions introduced by the revised Act, there 
                                                     
 
171 Horizontal hard-core cartels incl ude price fixing, market sharing, and production or sales quotas.  
Vertical hard-core cartels include agr eements between enterprises at differe nt levels in the market regarding 
fixed or minimum prices and agreements in distribution contracts.  
172 The abuses include refusal to deal;  price discrimi nation;  imposition of unfair prices or conditions;  
restrictions on production, outlets, or technical development;  and subordination of conclusion of contracts to 
supply of additional goods and services by partners. 
173 In the case of insurance companies, turnover is replaced by the total amount of gross annual 
premiums; in the case of banks and other financial intermediaries, by gross income (LCart Article 9) 
174 Competition Commission online information, "Communication concernant l'appréciation des 
accords verticaux, Décision de la Commission de la concurrence",  2 July 2007.  Viewed at:  
http://www.weko.admin.ch/publikationen/00213 /Vertikalbekanntmachung_f.pdf?lang=fr. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 79 
 
 
was an increase in the length of proceedings.  In addition, Comco imposed direct sanctions for the 
first time.175  The Comco and its Secretariat dealt with cases affecting all sectors of the economy 
including health care, financial services, energy, telecommunications, and construction (Table III.10).  
In addition to restraints on competition with inte rnational and national dimensions, the Commission 
also investigated restraints with a more limited scope (i.e. cantonal/communcal dimensions only and 
no significant impact on the economy) involving small and medium-sized companies (SME). 
Table III.10 
Proceedings by the Competition Commission and its Secretariat, 2007  
Area Cases Results 
Financial services   
Market for consumer credit Preliminary investigation 
Rates of interest and information activities of two 
databases No indication of restraints of competition 
Credit cards (interchange fee) Abuse of a (collective) dominant position by the 
credit card companies The Domestic Multilateral Interchange Fee 
(DMIF) has been reduced by 0.2% 
Debit cards (interchange fee) Abuse of dominant position 
Price discrimination based on the method of payment Ongoing  
Use of cash dispensing 
machine Agreement between the Swiss banks and 
Postfinance relating to the use of cash dispensing machines by non-banking customers  Preliminary investigation 
Trade in securities  Trade in secu rities on the Swiss stock exchange 
Investigation regarding the stock exchange 
obligation laid down in the exchange's own rules Preliminary investigation  
Health    
Supplementary insurance Price-fixing in the tariff agreements between 
hospitals and insurers in regard to supplementary 
insurance in the Canton of Lucerne Ongoing 
Off-list medicines Recommended prices for certain medicines (i.e. 
price fixing agreements of off-list medicines) Ongoing  
Documed Documed AG published the Swiss Medicinal 
Products Compendium .  Investigation to determine 
whether Documed:  obtains unreasonable prices 
from the pharmaceutical companies for the publication of information on medicinal products;  
and refuses to enter into contractual negotiations 
with competitors Ongoing 
Telecommunications   
Mobile telephony termination 
charges Swisscom Mobile held a dominant positions in 
relation to the termination of calls in their mobile 
network. Investigation to determine if a dominant 
position has been abused by termination charges 
that are excessive Abuse of dominant position for excessive pricing 
to the detriment of consumers;  Swisscom Mobile 
was fined Sw F 333 million.  Appeal lodged 
Swisscom "Talk & Surf" Abuse of a dominant position through package 
offers Ongoing 
Swisscom telephony services 
for business customers Abuse of a dominant position due to a price 
squeeze Ongoing 
Swisscom ADSL (pricing 
policy) Excessive advance service prices for resellers in 
comparison with the end customer prices (possible 
price squeeze) Ongoing 
Teleclub/Cablecom Abuse of dominan t position due to non-activation 
of Teleclub digital on the CATV network Ongoing 
Table III.10 (cont'd) 
                                                      
175 Since 1 April 2005, under the revised Law, Comco can impose direct sanctions.   WT/TPR/S/208/Rev.1 Trade Policy Review 
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Area Cases Results 
Media   
Publigroupe Publigroupe, as the leaseholder of leased 
newspapers, refused to pay various small agents a 
fee for advertisements placed, citing the selection criteria that it had itself drawn up Comco has established that Publigroupe had 
abused its dominant position in relation to 
placing advertising in the print media by discriminating against other agents and had 
therefore foreclosed the market;  Publigroupe 
was fined Sw F 2.5 million.  Appeal lodged 
Market for books in the 
French speaking part of 
Switzerland Price-fixing agreements between distributors 
Investigation whether the increase in price is 
justified on economic grounds Ongoing 
Construction industry   
Cement and concrete 
industry  (New Rail Link 
through the Alps) Price-fixing agreements in the supply of cement for 
the NRLA No unlawful price or territorial agreements 
between Swiss cement s uppliers could be proven 
Ticino road surfacing cartel Bid-rota ting cartel for the award of road 
construction in the Ticino canton Bid-rotating cartel was established by Comco.  
No fine (transitional period). Appeal lodged 
Door fittings Price and bidding agreements between supplier 
companies relating to windows, French doors, and 
doors.  These agreements may cover prices, 
increases in prices, material surcharges, and the award of contracts Ongoing  
Transport   
Air freight  Investigation into  various airlines relating to 
agreements on air freight:  intended to determine whether agreements exist on surcharges for fuel, 
security services, war risk s, and customs clearance Ongoing  
Transport and logistics 
companies Agreements in the transport and logistics sector on 
the passing on and/or joint fixing of surcharges, fees, and transport tariffs for freight forwarding 
services by air, land, and sea Ongoing 
Energy    
EWL/CKW Preliminary investigation:  agreement on 
demarcation of distribution areas for electricity 
between Energie Wasser Luzern (EWL) and Centralschweizerische Kraftwerke (CKW) No indication of restraint of competition.  With 
the entry into force of the Federal Law on power 
supply on January 2008, such procedures are without object 
NOK Preliminary investigation:  refusal of NOK to allow 
two power distribution companies a direct connection to a higher network level Refusal did not constitute an infringement 
because even without a direct connection to NOK network, the two companies were able to provide 
their end consumers with an adequate supply of 
electricity 
Source:  Competition Commission (2006), Annual Report 2006 ;  and information provided by the Swiss authorities.   
158. The Federal Law against unfair competition appli es to unfair trading practices that affect 
relations between customers and suppliers.  Under the law, any conduct or business that is deceptive 
or in another manner violates the principle of dea ling in good faith, and that affects the relationship 
between competitors or between sellers and purchasers,  is unfair and illegal.  The law contains basic 
rules for the correct publishing of prices and for the prevention of misleading price comparisons;  
detailed provisions are laid down in the Ordinance on notification of prices.  The law also provides for 
civil or criminal remedies.  The latter include impr isonment for up to three years or a fine of up to 
Sw F 100,000. 
159. The purpose of the Federal Law on the internal ma rket (LMI) was to eliminate restrictions on 
market access arising from cantonal and communal regulations, with regard to both government 
procurement and  mobility of enterprises and pers ons in Switzerland.  In December 2005, the 
Parliament adopted a revision, noting that the LMI had not been successful in eliminating technical 
and administrative barriers (at cantonal and communal levels) that segment local markets and prevent 
competition.  The revision eliminated cantonal barrier s to regulated activities, so as to allow persons Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
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to pursue these activities throughout Switzerland176;  it also enhanced freedom of establishment:  
market access gained in one canton will not be lost when a company moves its activities.  The 
revision introduced an obligation for the cantons and communes to allow competition in areas where 
they hold monopolies and to grant licences (concessions) to third parties interested in exercising the 
activity.  The revised LMI allows the Comco to c ontest cantonal or communal decisions found to be 
in breach of the law. 
160. The Law on price surveillance (LSPr) has not been amended, and there have been no major 
changes to the price surveillance framework since the last TPR of Switzerland and Liechtenstein.  The 
Price Controller (appointed by the Federal Council)  observes price developments, prevents abusive 
price increases and abusive price maintenance in  any market, where the price level is not the 
consequence of effective competition, and informs th e public about her/his activities.  When cartels or 
enterprises with market power envisage a price incr ease, they may submit it to the Price Controller.  
In addition, anyone who believes that a price has been increased or maintain ed in an abusive manner 
may address a notice of abuse to the Price Controller.  The latter will determine if there are indications 
of abusive price fixing, and if so will attempt to r each an amicable arrangement with the author of the 
alleged abuse.  If no arrangement ca n be reached, the Price Controller will prohibit all or part of the 
increase and order a lowering of the price.  Anyone  who intentionally fails to conform to a price 
reduction order, increases a price in spite of prohibition or exceeds a price fixed in an amicable arrangement, is liable to a fine of up to Sw F 100, 000.  The Price Controller must be informed in 
advance if prices are to be fixed or approved by other authorities (i.e. an executive or legislative 
authority of the Confederation, of a canton or co mmune, or another federal price regulator).  The 
Controller may recommend in these cases the abandonm ent of all or part of the intended price 
increase or the lowering of prices main tained at an abusive level.   
161. In 2007, the Price Controller launched enquiries in  regard to abusive pricing in several sectors 
of the economy, including electricity, gas, postal services, public transport, health care, and 
agriculture.
177  The review of tariffs set by public enterprises, such as La Poste and CFF, was a 
priority in 2007.  Moreover, to ensure the stability  of domestic prices of selected agricultural products, 
customs duties continue to be adjusted quarter ly under the "threshold"/indicative price system 
(Chapter IV(2)). 
162. In 2007, 1,312 price-related complaints were received and dealt with (1,364 in 2006).  The 
complaints related mainly to the health sector (pri ces of medicines), cable television, distribution of 
gas and electricity, and public tr ansport (air and rail transport). 
Competition policy in Liechtenstein 
163. Liechtenstein does not have national competiti on legislation.  Competition issues are dealt 
with mainly under the EEA and EFTA treaties.  Ho wever, two national laws deal with competition 
issues:  the Act of 22 October 1992 on unfair comp etition and the Act of 23 May 1996 regarding the 
Implementation of the Competition Rules in the EEA .  The latter regulates the implementation of the 
competition rules of the EEA agreement.  The Act was amended in 2006 due to  the implementation of 
the competition rules of Council Regulation (EC) No. 1/2003 on the implementation of rules on competition laid down in Articles 81 and 82 of th e Treaty and Council Regulation (EC) No. 139/2004 
on the control of concentrations between undertaki ngs.  In Liechtenstein, the Office of Trade and 
Transport continues to have jurisdiction over competition issues.   
                                                     
 
176 For instance, if a canton acknowledges the equi valence of qualifications acquired abroad with 
domestic requirements, such a decision is binding for all other cantons. 
177 The Price Controller publishes an annual report on the main cases analysed ov er the previous year  
(Surveillance des prix online information.  Viewed at:  http://www.monsieur-prix.ch). WT/TPR/S/208/Rev.1 Trade Policy Review 
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164. The Act on unfair competition was amened in 2008 to implement EC Directive 
No. 2005/29/EC on unfair business-to-consumer commerc ial practices.  The Directive is aimed at 
clarifying consumers' rights and simplying cross-border trade. 
165. Liechtenstein continues to maintain price c ontrols on public transpor t, postal and medical 
services, drugs, and medical equipment.  Electricity and gas prices for small consumers (under 
10 GW) are set by two state-owned companies;  changes are under way to comply with EC regulations in the electricity and gas market.
178  Since the last Review in 2004, price controls on 
telecommunication services have been removed. 
(iv) Intellectual property (IP) rights 
166. Swiss IP legislation has undergone several revisions since 2004;  the process is continuing, 
mainly to keep pace with technological developments  and, where the authorities deem appropriate, to 
harmonize with EC legislation and other treaties.  Liechtenstein continues to use the Swiss patent 
legislation, but has its own legislation on copyright, trade marks, and industrial designs (Table III.11).  
In addition, Liechtenstein implements EEA rules on  intellectual property.  The competent authorities 
for IP issues are the Swiss Federal Institute of Intellectual Property179, and the Liechtenstein Office of 
Trade and Transport.  Switzerland and Liechtenstein are members of, inter alia , the WIPO, and are 
parties to several treaties and inte rnational conventions (Table III.12). 
Table III.11 
Intellectual property legislation, 2008 
Legislation Entry into force (as at) RS No. 
Switzerland   
Patents   
Federal Law on patents  25 June 1954 (1 July 2008) 232.14 
Ordinance on patents  19 October 1997 (1 July 2008) 232.141 
Trade marks   
Federal Law on the protection of trademarks and i ndications of source 28 August 1992 (1 July 2008) 232.11 
Ordinance on the protection of trademarks 23 December 1992 (1 July 2008) 232.111 
Industrial designs and models   
Federal Law on the protection of desi gns  5 October 2001 (1 July 2008) 232.12 
Ordinance on the protection of designs  8 March 2002 (1 July 2008) 232.121 
Copyright and neighbouring rights    
Federal Law on copyright and related ri ghts  9 October 1992 (1 July 2008) 231.1 
Ordinance on copyright and related rights  26 April 1993 (1 July 2008) 231.11 
Layout designs (topographies) of integrated circuits    
Federal Law on the protection of topographies of semi-conductor 
products  9 October 1992 (1 July 2008) 231.2 
Ordinance on the protection of topographies of se mi-conductor products  26 April 1993 (1 July 2008) 231.21 
Protection of plant varieties   
Federal Law on the protection of new plant varieties 20 March 1975 (1 September 2008) 232.16 
Ordinance on the protection of new plant varieties  11 May 1977 (1 July 2008) 232.161 
Geographical indications    
Federal Law on the protection of trademarks and indi cations of source 28 August 1992 (1 September 2008) 232.11 
Federal Law on agriculture 29 April 1998 (1 January 2008) 910.1 
Ordinance regulating the use of the "Swiss made" na me on watches 23 December 1971 (1 July 1995) 232.119 
Table III.11 (cont'd) 
                                                      
178 As a member of the EEA, Liechtenstein is taking steps to comply with EC Directives 
Nos. 2003/55/EC gas and 2003/54/EC, of 26 June 2003 on common rules for the internal market in natural gas 
and in electricity, respectively. 
179 Swiss Federal Institute of Intellectual Property  online information.  Viewed at:  www.ipi.ch. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 83 
 
 
Legislation Entry into force (as at) RS No. 
Ordinance on the protection of appell ations of origin and geographical 
indications for agricultural products and processed agricultural products 28 May 1997 (1 January 2008) 910.12 
Ordinance of the Federal Depart ment of the Economy (DFE) on 
minimum requirements for the control of protected appellations of origin 
and geographical indications 11 June 1999 (1 January 2008) 910.124 
Ordinance on viticulture and the importation of  wine 14 November 2007 (1 January 2008) 916.140 
Ordinance of the Federal Office for Agriculture (OFAG) on the list of 
vine varieties permitted for certificat ion and the production of standard 
materials and the range of vine varieties  17 January 2007 (20 February 2007) 916.151.7 
Ordinance on the production and placing on the market of plant 
propagation material 7 December 1998 (1 January 2008) 916.151 
Protection of undisclosed information   
Federal Law on patents  25 June 1954 (1 July 2008) 232.14 
Ordinance on patents  19 October 1977 (1 July 2008) 232.141 
Ordinance on the protection of trademarks 23 December 1992 (1 July 2008) 232.111 
Ordinance on the protection of topographies of semi-conductor products 26 April 1993 (1 July 2008) 231.21 
Federal Law against unfair competition 19 December 1986 (1 April 2007) 241 
Federal Law on medicinal products and medical  devices 15 December 2000 (1 May 2007) 812.21 
Ordinance on medicines 17 October 2001 (1 July 2007) 812.212.21 
Ordinance on the placing on the market of phytosa nitary products  18 May 2005 ( 25 May 2008) 916.161 
Ordinance on the production and placing on the market  of feedstuffs 26 May 1999 (1 January 2008) 916.307 
Liechtenstein   
Patents   
Federal law of Switzerland on patents for i nventions 25 June 1954 (February 1995) 232.14 
Federal Ordinance of Switzerland on patents for i nventions 19 October 1997 (13 December 2007) 232.141 
Federal Law of 26 September 1979 regarding the Treaty between 
Liechtenstein and Switzerland on the protection of patents 1 April 1980 232.13 
Trade marks   
Act on the protection of trade marks and indications of origin 31 March 1997  232.11 
Ordinance on the protection of trade marks and indi cations of origin 31 March 1997 (17 March 1998) 232.111 
Industrial designs   
Federal Law on the protection of  designs 5 November 2002 232.12 
Ordinance on the protection of designs 5 November 2002 232.121 
Copyright and related rights   
Federal Law on copyright and neighbouring rights 23 July 1999 (19 December 2006)  231.1 
Ordinance on copyright and neighbouring right s 29 December 1999 (15 November 2005) 231.11 
Federal Law on the protection of topographies  of semiconductor products 23 July 1999 231.2 
Ordinance on the protection of topographies of semiconductor products 16 February 2001 231.21 
Appellations of origin/geographical indications/indications of origin   
Federal Law on the protection of trade marks and indications of origin 31 March 1997  232.11 
Ordinance on the protection of trade marks and indi cations of origin 31 March 1997 (17 March 1998) 232.111 
Source:  WIPO online information, "About WIPO:  Members and Observers".  Viewed at:  http://www.wipo.int/ 
 members/en/;  and information provided by the Swiss and Liechtenstein authorities. 
Table III.12  
Membership of WIPO treaties, 2008 
Entry into force Treaties  
Switzerland Liechtenstein 
Berne Convention (literary and artistic works) December 1887 July 1931 
Budapest Treaty (deposit of micro- organisms) August 1981 August 1981 
Brussels Convention (distribution of  programme-carrying signals transmit ted by satellite) September 1993 NS 
Geneva Convention (unauthorized duplicati on of phonograms) September 1993 October 1999 
Hague Agreement (international deposit of  industrial designs) June 1928 July 1933 
Locarno Agreement (international classifica tion for industrial designs) April 1971 NS 
Table III.12 (cont'd) WT/TPR/S/208/Rev.1 Trade Policy Review 
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Entry into force Treaties  
Switzerland Liechtenstein 
Madrid Agreement (false or deceptive indications of source on goods;  and international 
registration of marks) July 1892 July 1933 
Madrid Protocol (international regi stration of marks) May 1997 March 1998 
Nice Agreement (international classification of goods and services) August 1962 May 1967 
Paris Convention (industrial property) July 1884 July 1933 
Patent Law Treaty  July 2008 NS 
Patents Cooperation Treaty (PCT) January 1978 March 1980 
Rome Convention (performers, producers of phonograms, and broadcasting organizati ons) September 1993 October 1999 
Strasbourg Agreement (international pa tent classification) October 1975 NS 
Trade mark Law Treaty (TLT) May 1997 March 1998 
WIPO Convention April 1970 May 1972 
WIPO Copyright Treaty July 2008 April 2007 
WIPO Performances and Phonograms Treaty  July 2008 April 2007 
Note: NS = non-signatory.  
Source:  WIPO online information, "About WIPO:  Members and Observers".  Viewed at:  http://www.wipo.int/ 
 members/en/;  and information provided by the Swiss authorities.   
(a) Patents 
167. The Patent Law of 1954 and its Ordinance c ontinue to regulate patent protection in 
Switzerland and Liechtenstein.  Sw iss patent legislation has unde rgone several amendments to 
harmonize it with, inter alia , other national legislation, EC legisl ation, the revised European Patent 
Convention, and the Patent Law Treaty, and to ensure  adequate protection for inventions in the field 
of biotechnology. 
168. Foreigners wishing to apply for a Swiss patent  must have a representative with a business 
address in Switzerland.  In order to be patented, th e subject must meet novelty, inventive activity, and 
industrial or commercial criteria.180  An invention is considered new when it is not already part of the 
current state-of-the-art.  Patent applications must  include a description of the invention, the patent 
claims, an abstract and, if necessary, technical draw ings.  Application fees must be paid.  For a patent 
application to be approved the invention must not have been published, exhibited or presented in any 
way.  These minimum requirements are checked by the Institute, whereas novelty and inventive steps 
are not.  Nonetheless, novelty and inventive steps ar e requirements in all technical fields and are 
legally contestable.  Complaints agai nst the Institute's decisions in re gard to patents may be brought to 
the Federal Administrative Court, and the latter's de cision may be appealed be fore the Swiss Federal 
Court. 
169. On average, granting of a patent takes 3-5 year s;  however, provisional protection starts as 
soon as the application is published or brought to the attention of a third party.  Patent protection is 
guaranteed in Switzerland and Liechtenstein for a maximum of 20 years, if fees are paid.181  There are 
three grounds for revocation of a patent:  non-payment of annual fees; a declaration of invalidity by a 
judge; or a written revocation by the patent owner.  If an inventor, three years after a patent has been 
                                                      
180 Patents protection is not granted on things outside the field of technology (for example, ideas, 
systems of calculation, such as for lo tteries or accounting, and perpetual mo tion objects, i.e. that defy the first 
and second laws of physics), and non-commercial items may not be protected by a patent.  Surgery and therapy and diagnostic methods for humans or animals are not patentable (except for products, in particular substances 
or compositions, for use in any of these methods).   
181 The fifth year after filing, annual fees must be paid in advance for every pending patent application 
or patent in force. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 85 
 
 
granted, or four years after the date of the pate nt application, has not made sufficient use of the 
invention within the country (including importation), interested parties may apply for a compulsory 
licence.  No compulsory licence has been granted so far.   
170. Patent protection guarantees inventors the exclus ive commercial use of their inventions.  It 
also grants them the right to prohibit the importation of a patent-protected product distributed abroad (principle of national exhaustion in patent rights).
182  In Switzerland, patent holders can prevent 
parallel imports of their patented goods.  Liechtenstein applies EEA-wide exhaustion. 
171. The Patent Law protects undisclosed informa tion by safeguarding industrial and business 
secrets in patent application files a nd the patents register (Article 65). 
(b) Plant varieties 
172. The legal basis for the protection of plant vari eties is the Federal Law on the protection of 
new plant varieties of 1977 and its Ordinance of 1977.  This law has been revised, inter alia , in order 
to adapt it to the 1991 Act of the UPOV Conventio n, and entered into force on 1 September 2008.  
Switzerland has been a member of the Union for th e Protection of New Varieties of Plants (UPOV) 
since 1977. 
173. At the time of its last Review in 2004, Li echtenstein was in the process of establishing a 
system for the protection of plant varieties which would enable it to accede to the 1991 Act of the 
UPOV Convention.  Nevertheless, in accordance with  TRIPS obligations, protection granted to plant 
varieties abroad should also be recognized in Liechtenstein.183 
(c) Trade marks 
174. A trade mark needs to be registered to be protected in Switzerland.  Anyone domiciled in 
Switzerland can file a trade mark for registration.   Persons (or companies) domiciled abroad, must 
appoint an agent who is domiciled in Switzerland.  An  application, the mark itself, and a list of the 
goods and services it represents must be submitted;   this is then examined for admissibility. 
175. Trade marks are signs suitable for differen tiating the goods or services of a business from 
those of other businesses.184  However, any sign may be sent to th e Institute for registration.  At the 
time of the trade mark examination,  the Institute decides whether the sign is suitable and whether it 
can be registered.185  Once a correctly filed form is received  by the Institute, the draft mark is under 
provisional filing protection until it is registered as a trade mark.  In cases of  conflict, the decisive 
date is that of the application and not of the regist ration.  Protection is valid for ten years and can be 
renewed as often as desired. 
176. The Swiss Federal Law on the protection of trad emarks and indications of source (Trademark 
Protection Law) does not authorize the Institute to  automatically examine wh ether an identical or 
similar mark has already been regist ered at the time of application.  Applicants should carry out these 
searches prior to the application.  If the same mark is registered for the same or similar goods and/or 
services, an opposition may be filed at the Institute by  the owner of the mark, within three months of 
                                                      
182 The Swiss Patent Law is being amended in order to uphold and clarify this principle. 
183 WTO document WT/TPR/M/141/Add.1, 16 February 2005. 
184 Trade marks can be words, letters, numbers, icon s, figurative elements, 3-D shapes, holograms, as 
well as combinations of elements or colour.  Acoustic marks (jingles) are also possible.   
185 Simple and commonly used signs, such as nu mbers and letters, indications for objects and 
descriptive elements, and signs offensiv e to public laws of decency, or mi sleading or illegal signs are excluded 
from trade mark protection.  National insignia and other official signs are also excluded. WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 86 
 
 
the date of publication of the registration (e.g. in Swissreg  (www.swissreg.ch) or the WIPO Gazette of 
International Marks ).  After the three-month period, a clai m to have the more recent mark annulled 
may be filed at a civil court.  The Institute's deci sion regarding a trademark may be contested at the 
Federal Administrative Court (the court is free to examine the registerability of a mark), the latter's 
decision can be appealed before the Swiss Federal Court. 
177. The Swiss Federal Court upholds the principle of international exhaustion and authorizes 
parallel imports of products c overed by trade mark rights. 
178. The Trademark Law (Article 72b) and the Or dinance on the protection of trademarks 
(Articles 36.3 and 56b) protect undisclosed info rmation by safeguarding industrial and business 
secrets in trade mark application files and the tr ade mark register, as well as at the border.  
179. In Switzerland, geographical indications are pr otected by the Trademark Protection Law, the 
Agriculture Law (RS 910.1), and other ordina nces (Table III.11).  Geographical indications 
irrespective of origin, are protected automatically for all products and servi ces;  registration is not 
required.  In addition to the general protection pr ovided by the Trademark Law, agricultural products 
and processed agricultural products can be entere d into the federal register for protected 
denominations of origin (PAOs/AOC) and prot ected geographical indications (PGIs/IGP).186  For 
geographical indications, origin is determined by  the place of manufacture, the origin of the raw 
materials, and the local content in the end-product.  In the case of watches, for Swiss origin to be 
granted, at least 50% of value added must be of Swiss origin and the essential portions of the 
manufacturing process must have taken place in Switzerland.187 
180. Wine appellations are protected under the Ordi nance on viticulture and the importation of 
wine, which defines the controlled appellations of origin (AOC).  The Swiss Confederation sets the 
general framework and the definition of denominati ons of origin, and keeps an inventory of the 
protected Swiss appellations for wines. 
181. The illegal use of geographical indications is puni shable by a custodial sentence of up to one 
year or a fine.  If the infringing party acts commercia lly, the custodial sentence is up to five years and 
the fine up to a maximum of Sw F 100,000. 
182. There appear to have been no changes in protection for trade marks and for geographical 
indications in Liechtenstein since 2004.  The Law on the Protection of Trad emarks and Geographical 
Indications of 1996 protects manufacturing, trading and service marks, geographical indications of 
goods, and commercial distinguishing signs.  In Liechte nstein, international exhaustion is set by law 
for trade marks and copyrights, and related topographies.  
(d) Industrial designs 
183. The 2002 Designs Law and its ordinance remains in force in Switzerland.188  The legislation 
has been revised to, inter alia , enable registration through electronic transmission, lower or eliminate 
registration fees, and clarify the procedures for the publication of designs.189 
                                                      
186 This register was established by the Ordinance on the protection of appellations of origin and 
geographical indications for agricultural products and processed agricultural products (RS 910.12). 
187 Swiss Federal Institute of Intellectual Property on line information, "FAQ:  Indications of Source".  
Viewed at:  http://www.ige.ch/faq/f10e.shtm [5 May 2008]. 
188 RS 232.12 and RS 232.121.   
189 For more details regarding changes to procedural issues, see Swiss Federal Institute of Intellectual 
Property online information, "Legal Information: Design s".  Viewed at: http://www.ige.ch/e/jurinfo/j102.shtm#1 
[2 May 2008]. Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 87 
 
 
184. Creations can be protected under the Swiss law wh en the design is new, inherently distinctive 
from existing designs, and does not offend the public morality or law.  The Institute does not examine 
a design for novelty or originality.  However, th e novelty of a design may be legally contested at 
anytime.  The courts must decide whether a protectiv e title is valid;  if not, the design is cancelled in 
the register.   
185. Persons not domiciled in Switzerland must have a Swiss representative to register a design.  
Applications are only examined after the  relevant  fees are paid.  If there are no substantial problems 
(such as an illegal design), the d esign is registered and published by Swissreg .190  If an application is 
rejected, an appeal may be made to the Federal Administrative Court within 30 days;  the latter's 
decision may be appealed before the Swiss Federal Court.  Protection begins from the date of filing 
and lasts for five years.  Protection can be renewe d for another four terms each of five years.  A 
design may be protected for a maximum of 25 years.  
186. Liechtenstein has its own law on industrial desi gns.  The Act is very similar to the Swiss 
Federal Law on the protection of designs.  It pr otects designs by registration and grants exclusive 
rights to the author(s) of a design or their successor(s) in title.  A design enjoys legal protection if:  it 
is new and displays originality;  it is unique and differs from existing objects in important points;  and 
it is neither illegal nor offensive to  public taste.  The maximum duration of protection is 25 years:  the 
first five-year term of protection begins on the da te of the deposit;  it may be renewed for four 
consecutive five-year periods.  The Design Act stipul ates the principle of international exhaustion of 
rights.191 
(e) Copyright and neighbouring rights  
187. Copyright and neighbouring rights are regulated in Switzerland by the Copyright Law and its 
ordinance.192  The law was amended in 2003 to regulate  the exhaustion of audiovisual works.  As a 
result, imports of video cassettes or DVDs, previ ously marketed in a third country, require an 
authorization from the author or their legal successo r to be distributed in Switzerland.  Audiovisual 
works in Switzerland are exploited according to th e "cascade principle" during the first stage of 
exploitation, i.e. the work is first featured in cinemas, then on video or DVD, and finally on 
television.193  The Swiss legislation was further revised as a result of Switzerland's ratification of the 
WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT).194 
188. Copyright protects literary and artistic creations  that possess an individual nature, i.e. a 
certain degree of originality.  In particular, the fo llowing are protected: literary works, musical works, 
works of fine art, audio-visual works, choreogr aphic works, pantomimes, and scientific works.  
Copyright also protects software (computer progr ams).  Performing artists, manufacturers of audio 
and audio-visual media, and broadcasting companies (in particular, TV and radio) are protected under 
neighbouring rights, which cover performances a nd reproductions, and audio and audio-visual 
recordings and broadcasts. 
                                                      
190 Swissreg online information.  Viewed at:  www.swissreg.ch. 
191 WTO (2004).  
192 RS 231.1 and RS 231.11.   
193 Swiss Federal Institute of Intellectual Property  online information, "Copyright". Viewed at:  
http://www.ige.ch/e/jurinfo/j103.shtm [2 May 2005]. 
194 Swiss Federal Institute of Intellectual Property  online information, "Copyright". Viewed at:  
http://www.ige.ch/e/jurinfo/j103.shtm#a09 [3 July 2008]. WT/TPR/S/208/Rev.1 Trade Policy Review 
Page 88 
 
 
189. Protection for copyright and neighbouring right s applies automatically from the moment of 
creation.  No formalities are required;  no copy need s to be deposited.  The Institute does not maintain 
a copyright register.  In Switzerland, copyright protection ends 70 years after the death of the author, while software protection ends 50 years after the death of the author.  Neighbouring rights end 
50 years after the performance of the work by the pe rforming artist, the publication (or failing this, the 
production) of the audio or audio-visual media or the transmission of the broadcast. 
190. The Swiss Federal Tribunal upholds the principl e of international exhaustion and authorizes 
parallel imports of products  covered by copyrights. 
191. Copyright protection in Liechtenstein is guarant eed by the Law of 19 May 1999 on copyright 
and neighbouring rights.  A relate d ordinance governs the collective e xploitation of authors' rights and 
neighbouring rights, as well as measures relating to imports and exports of goods whose distribution 
within the country infringes copyright or neighbouring rights.
195  In Liechtenstein, international 
exhaustion is set by law for copyri ghts and related topographies.   
192. Since its previous Review, to fulfil its EEA ob ligations, Liechtenstein has transposed several 
EC Directives in the area of copyrights.196  The most important amendments concern the adaptation of 
copyrights and related rights to technological developmen ts and in regard to resale rights of authors.  
The resale right was introduced by Liechtenstein at th e end of 2005.  It applies to works of art of a 
value of Sw F 4,700 or higher, and the beneficiary of the resale must be either the author or the legal 
successor. 
(f) Layout-designs (topographies) of integrated circuits  
193. The Topographies Law and Topographies Ordinan ce, as revised in 2006 and 2007, continue 
to regulate the protection of topographies of integrated circuits.197  The legislation has been amended 
to take into account registration via the Internet. 
194. According to the Law, topographies may be protected in Switzerland if produced by a Swiss 
manufacturer or a person whose normal place of residence (natural person) or place of business (legal person) is in Switzerland, and they have first been  published in Switzerland.  However, in accordance 
with the TRIPS Agreement, topographies belonging to a resident of a contracting party are also 
protected in Switzerland, and protection is also granted on the principle of reciprocity. 
195. In Switzerland, protection extends only to the ex ternal form of the topography and not to the 
electronic function of the semi-conductor.  Topographies can be protected if they are not familiar to experts in the field.  However, for the topograp hy to be protected it does not require a special 
inventive step nor to be of an individual character .  Topographies may be protected when they consist 
of elements that are already known, provided the combination of these elements is in itself unusual. 
196. The owner has the exclusive right to reproduce the topography and the right to publish it in 
any form.  The Law also provides exceptions to the protection, on educational and research grounds.  
Under the Law, protection of a topography is for a maximum of 15 years after the development of the 
topography (i.e. protection cannot be renewed). 
                                                     
 
195 WTO (2004);  and information provided by the Liechtenstein authorities. 
196 Directive 2001/84/EC of 27 September 2001 on the resale right for the benefit of the author of an 
original work of art;  and Directive 2001/29/EC of 22 May 2001 on the harmonization of certain aspects of 
copyrights and related rights in the information society.  
197 RS 231.2 and RS 231.21.   Switzerland and Liechtenste in WT/TPR/S/208/Rev.1 
 Page 89 
 
 
197. In case of infringement, there are a wide range of civil law remedies;  infringements may also 
lead to criminal prosecution (imprisonment for up to  one year, or a fine).  Offences committed on a 
commercial basis are subject to public prosecution a nd can carry penalties of imprisonment and a fine 
of up to Sw F 100,000. 
198. The Ordinance on the protection of topographi es of semi-conductor produc ts (Article 9 and 
18b) protects undisclosed information by safeguarding industrial and business secrets in topography 
application files and the topographies register. 
199. In Liechtenstein, topographies are protected by the 1999 Act on the protection of 
topographies of semi-conductor products and its relate d ordinance.  Protection is granted on the 
condition that the products are the result of the creat or's own intellectual work and that they are not 
trivial in the semi-conductor industry.  The owner has an exclusive right to reproduce the topography 
and the right to publish it in any form. The Act also provides exceptions to the protection on educational and research grounds.  Topographies are pr otected for a maximum of 15 years;  renewal is 
not foreseen.  EEA-wide exhaustion is provi ded for in the law for topographies.   
(g) Enforcement  
200. According to the Swiss Federal Institute of Intellectual Property, international trade in 
counterfeit and illegally copied  goods has increased markedly in the past decade.  The value of pirated 
goods, according to the Swiss customs authoriti es, increased from Sw F 40,000 in 1995 to 
Sw F 1.3 million in 2007, and the number of cases in  which Customs had to intervene increased from 
18 to 460.  Hence, the fight against counterfeiting and piracy remains one of the Institute's priorities.  
The 2008 amendments of the Patent Law provide for stronger penalties for counterfeiting and piracy 
on a commercial scale in all areas of intellectual property rights.  Moreover, measures are taken not 
only in the case of imports and exports but also in re gard to goods in transit that infringe intellectual 
property rights in Switzerland.  As of July 2008, counterfeit products can also be seized/confiscated 
by Customs at the border when imported for private use only.  The Institute has also launched several 
campaigns to raise awareness and underline the dele terious effects of counterfeiting and piracy, not 
only to the economy but also for public health and safety.
198 
                                                      
198 Swiss Federal Institute of Intellectual Property (2004);  Swiss Federal Institute of Intellectual 
Property (2007);  and Swiss Federal Ins titute of Intellectual Property (2008).