WORLD TRADE  
ORGANIZATION   
WT/COMTD/N/7/Add.4 
8 November 2011 
 (11-5686) 
Committee on Trade and Development Original:   English/ 
 French 
 
 
 
GENERALIZED SYSTEM OF PREFERENCES 
 
Notification by Switzerland 
 
Addendum 
 
 
The following communication, dated 31 October 2011,  is being circulated at the request of the 
delegation of Switzerland.  It contai ns two notifications from Switzerland: 
 
1. A notification in accordance with Paragraph 4 of Annex II of the Agreement on Rules of 
Origin annexed to the Agreement Establishing the World Trade Organisation, concerning new 
rules of origin applicable within the frame work of Switzerland's Generalized System of 
Preferences (GSP).  These rules of origin apply as of 1 May 2011 and are contained in the 
following legal instrument: 
 Ordinance of 30 March 2011 on rules of or igin governing the granting of tariff 
preferences to developing countries (Ordinance on rules of origin, OROPD). 
 
 Link to the above referred document:  http://www.admin.ch/ch/f/rs/c946_39.html.  
 
2. A notification in accordance with Paragra ph 4 of the Decision on Differential and 
More Favourable Treatment, Reciprocity and Fulle r Participation of Developing Countries of 
28 November 1979 (the "Enabling Clause"), con cerning amendments to the list of beneficiary 
countries within the framework of Switzerland's Generalized System of Preferences (GSP).  
The revised list applies as of 1 July 2011 and is contained in the following legal instrument: 
 Ordinance of 16 March 2007 establishing pr eferential tariff rates for developing 
countries (Ordinance on tariff preferences), Annex I. 
 
 Link to the above referred document:  http://www.admin.ch/ch/f/rs/c632_911.html.  
 
 
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I. NEW SWISS GSP RULES OF ORIGIN 
1. New rules of origin applicable within the fra mework of Switzerland's Generalized System of 
Preferences (GSP) apply as of 1 May 2011.  They ai m at an increased simplicity and generosity, and 
are based on the following main characteristics. WT/COMTD/N/7/Add.4 
Page 2  
 
  1. Origin determination criteria 
2. For products, the new rules contain simple  criteria which may be easily understood by 
operators and easily controlled by administrati ons.  These criteria include a maximum permitted 
content of non-originating materials;  change of ta riff heading or sub-heading;  a specific working and 
processing operation;  and the use of wholly obtaine d materials.  Simplicity is also enhanced by 
limiting the number of different rules.  Therefore th e rules of origin are defined whenever possible on 
a sector-by-sector rather than a product-by-product basis. 
3. In addition, the rules applicable to products  are made more generous by increasing the 
maximum permitted content of no n-originating materials, by re ducing the number of necessary 
working and processing operations or by increas ing the number of permissible working and 
processing operations. 
4. Last but not least, the new rules take into acc ount the specific situation of least developed 
countries (LDCs) by granting them a more generous  treatment in comparison to other beneficiary 
countries (see paragraph 4 below). 
2. Applicability of cumulation of origin 
5. Cumulation of origin is an important facilitati on which allows countries having identical rules 
of origin to work together for the purpose of  manufacturing products which are eligible for 
preferential tariff treatment. 
6. In addition to bilateral cumulation (allowing beneficiary countries to use materials of 
Swiss origin), the new rules of origin provide  for regional cumulation.  Existing cumulation 
possibilities between countries in the same regional group are maintained despite the differentiation 
introduced by the new rules of origin in some ca ses between LDCs and other beneficiary countries.  
Regional cumulation remains permitte d provided that when sending mate rials to another country of 
the group for the purpose of regional cumulation, each  country, be it an LDC or not, applies the rule 
of origin applicable to it in its di rect trade relations with Switzerland. 
7. The regional group to which Switzerland grants regional cumulation is the ASEAN, of which 
two countries - Brunei Darussalam and Singapore - ar e not granted regional cumulation as they are 
not beneficiary countries of the Swiss GSP. 
8. Beneficiary countries have, since 2001, been perm itted to cumulate origin with goods falling 
within Chapters 25 to 97 of the Harmonized System originating in Norway an d the European Union.  
This cumulation will continue and is foreseen to be extended to Turkey. 
3. Main other features 
9. Among other simplifications it is worth mentioning: 
 - The decrease in the number of specif ic rules for agricultural and transformed 
agricultural products (chapter headings 1- 24 of the Harmonized System);  for these 
products, only four specific rules remain; 
 
 - the simplification of origin granted by the vessels flag for fishery products captured 
outside territorial waters to be consid ered as wholly obtained (see Article 5); 
  - the relaxation (from 10 to 15 per cent) of the general tolerance rule (see Article 10); 
  WT/COMTD/N/7/Add.4 
 Page 3 
 
 
   - the possibility to account separately fungible originating and non-originating 
materials, with a view to their export to a beneficiary country in the frame of the 
bilateral cumulation (see Article 12). 
 
4. Special treatment for least developed countries (LDCs) 
10. Amidst their generally improved simplicity and ge nerosity of the new rules of origin grant a 
specific treatment to LDCs compared to other beneficiary countries.   This treatment is characterized, 
in general by allowing a maximum content of non-orig inating materials of up to 70 per cent or by 
providing for an equivalent level of rela xation for products originating in LDCs. 
11. It is the first time that Switzerland introduces a differentiation to the benefit of LDCs at the 
level of rules of origin.  Now, the rules of origin themselves target and contribute to the specific needs 
of LDCs.  This is a policy decision based on th e willingness to improve market access for producers 
and exporters from the poorest countries around the world. 
Link to the website on Switzerland's Export-Info desk: 
 http://www.seco-cooperation.admin.ch/e xport_infodesk/index.html?lang=en 
II. REVISED LIST OF COUNTRIES AND TERRITORIES BENEFITTING FROM 
SWITZERLAND'S GSP 
12. The revised list of countries and territories benefitting from Switzerland's GSP applies as of 
1 July 2011.  As before this list presents c ountries and territories under three categories, namely 
developing countries, least developed countries (LDCs)  and countries engaged in an international debt 
reduction initiative ("High Indebted Poor Countries - HIPC").  Countries and territories in the latter 
(HIPC) category are granted the treatment granted to LDCs. 
13. Main amendments within the revised list are: 
 - The exclusion from the list of high income territories or territories belonging to 
high-income economies;  this is with a view to better adhere to internationally agreed 
definitions of countries according to income groups; 
  - the exclusion from the list of countries ha ving concluded a free trade agreement with 
Switzerland through the European Free Trad e Association (EFTA);  this change 
applies to Colombia and Peru and is made  with a view to avoid contradictions 
between trade concessions; 
  - the exclusion from the LDC category of Cape Ve rde;  this is with a view to adhere to 
internationally agreed definitions according to income groups; 
  - the exclusion from the HIPC category of th e Republic of Congo;  this is with a view 
to take into account the recent successful debt cancellation of the Republic of Congo; 
  - the inclusion in the list of Palau;  this is with a view to better a dhere to internationally 
agreed definitions of countries according to income groups; 
 
 - the inclusion in the HIPC category of the Kyrg yz Republic;  this is with a view to take 
into account the fact that this country is currently engaged in the HIPC debt-reduction 
initiative. WT/COMTD/N/7/Add.4 
Page 4  
 
  ANNEXES 
 
 
I. RULES OF ORIGIN 
MAIN ANNEX:  Ordinance of 30 March 2011 on rules of origin governing the granting 
of tariff preferences to developing countri es (Ordinance on rules of origin, OROPD). 
 
- ANNEX 1:  Introductory note and list of the working or processing operations to be 
applied to non-originating materials in  order for processed products to obtain 
originating status. 
 
- ANNEX 2:  Certificate of origin Form A. 
 
- ANNEX 3:  Invoice declaration. 
 
- ANNEX 4:  Movement certificate EUR.1 
 
- ANNEX 5:  Goods excluded from regional cumulation. 
 
- ANNEX 6:  List of regional groups to wh ich Switzerland grants regional cumulation. 
  The text of the Ordinance can be downloade d (in French, German and Italian) under:  
http://www.admin.ch/ch/f/rs/c946_39.html.  
 
II. LIST OF GSP BENEFICIARIES 
MAIN ANNEX:  Ordinance of 16 March 2007 establishing preferential tariff rates for 
developing countries (Ordinance on tariff preferences). 
 
- ANNEX 1:  List of developing countries and territories. 
 
- ANNEX 2:  List of tariff preferences (unaltered). 
 
- ANNEX 3:  Lowering of tariffs on goods  under tariff headings 1006.4020 and 
1701.1100/9999 (unaltered). 
 
 The text of the Ordinance can be downloade d (in French, German and Italian) under:  
http://www.admin.ch/ch/f/rs/6/632.911.fr.pdf.  
 
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