WT/TPR/S/141 Trade Policy Review 
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III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) OVERVIEW  
1. Since their previous TPR in 2000, Switzerland and Liechtenstein have made progress in the 
liberalization of their common trade regime, pa rticularly through legislative and regulatory 
harmonization with the European Union.  They  have reduced customs tariffs autonomously on 
imports of certain textile and clothing items, a nd have taken steps to reduce the scope of their 
compulsory stock requirements.   
2. The common customs tariff of Switzerland and Li echtenstein still consists entirely of specific 
duties.  Some 99.7% of all tariff lines are bound at the HS eight-digit level, and by 2004 bound tariffs 
on all products had been lowered to their Urugua y Round final levels.  Bound tariffs are specific on 
agricultural products and alternate on the other pro ducts.  Ceiling bindings apply to most agricultural 
products and clothing.  The average bound rate, measured by the ad valorem  equivalents (AVEs) of 
the specific tariffs, is around 12%. Other duties and charges are bound at the zero rate.  Customs tariffs on gas, petroleum, and related products have not yet been bound.   
3. Overall tariff protection (in ad valorem  terms) has increased slightly, probably in part because 
of falls in Swiss franc prices of certain importe d agricultural products over the 2000-04 period.  The 
overall simple average of applied MFN tariffs wa s 9.3% in 2004 (up from 8.9% in 2000), with a 
maximum rate of 1,705% on out-of-quota imports of ed ible bovine offal;  only 18% of all tariff lines 
carrying the zero rate.  Some 39% of lines carry nu isance rates (i.e. non-zero rates less or equal to 
2%).  The average tariff on imports of agricultura l products (WTO definition) is about 36%, compared 
to 2.3% on non-agricultural products.  Given the re latively low level of i ndustrial tariffs, and the 
limited scope of agricultural trade liberaliza tion under most of Switzerland and Liechtenstein's 
free-trade agreements, the overall effect of tari ff preferences remains moderate, except for some 
categories of products (e.g. clothing and certain food products).  Moreover, tariff concessions mainly 
on agricultural products used as inputs, by reduc ing the rates effectively charged on these inputs, 
sometimes to near zero, further increase the effective rate of protection of food processing industries. 
4. While customs procedures appear overall to be efficient and transparent, additional tares 
applied for customs purposes continue to increase th e dutiable weight of ma ny imported products and 
thus the level of tariff protection.  A system of agricultural import threshold prices allows for ad hoc 
adjustments of tariffs to maintain stable dom estic prices.  Export subsidies are granted under, inter 
alia, a complex "price compensation" scheme designed  to neutralize the effects of high prices of 
domestically produced agricultural inputs on food export competitiveness.   
5. Switzerland and Liechtenstein ha ve not taken any anti-dumping, countervailing or safeguard 
measures since 2000.  However the two countries have  reserved their rights to invoke the special 
safeguard clause (under Article 5 of the WTO Agreement on Agriculture) for a large number of agricultural products, including those subject to  tariff quotas (283 tariff lines). Switzerland and 
Liechtenstein restrict exports of certain goods on ly for security, safety, and environmental reasons, 
and apply UN and certain EU trade embargoes. 
6. Switzerland and Liechtenstein have  substantially reduced state trade.  Switzerland's bilateral 
agreement on government procurement with the EU , and the revision of the EFTA Convention have 
extended access by member-state suppliers to Swiss procurement markets, beyond commitments 
made under the WTO Government Procurement Agreem ent (GPA).  Many of the regulatory changes 
have contributed to the further a lignment of Swiss regulations with the EU's the bilateral agreement 
on mutual recognition in relation to conformity as sessment entered into for ce in 2002, and to the Switzerland and Liechtenstein WT/TPR/S/141 
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harmonization of cantonal regulations at federal level.  Labelling is considered by the authorities as a 
priority area in rulemaking, and several mandatory labelling schemes are in place.  In March 2004, the 
Federal Council announced a revision of the 1995 Fe deral Law on the Internal Market to address 
remaining restraints on competition in trade in  services that stem from cantonal and communal 
regulations. 
7. Reforms are also taking place to stimulate comp etition in the Swiss economy.  The extension 
of the scope of the Swiss Law on cartels to restri ctions on imports protected by intellectual property 
rights, combined with the new provision against abuse of  territorial protection, is expected to partially 
address restrictions on parallel imports of patented  products, which have helped to keep prices of 
many products high by international comparison.  Furthermore, direct sanctions are now applicable 
for certain violations.  On the other hand, fina ncial assistance to private businesses continues in 
certain sectors;  support programmes providing subsidies to farmers and food producers have 
continued.  Also, substantial ta x exemptions are still granted by certain cantons to companies 
investing locally;  some are attributed exclusivel y to companies with no domestic sales.  Ad hoc 
support has been granted since 2000, for example to th e Swiss national airline to ensure its survival, 
and to two cantonal banks.   
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, documentation, and customs procedures 
8. Trading activities in Switzerland and Liechtens tein are generally ope n to nationals and 
foreigners with a valid residence and work permit.  There have been two main changes in registration, 
documentation and customs procedures since the last TPR in 2000. Firstly, pursuant to its obligations 
under the Harmonized System (HS) Convention, Switzerland (on behalf of the customs union) 
implemented the HS2002 changes on 1 January 2002.  In line with the procedure agreed to by WTO Members for HS2002 changes
1, Switzerland submitted its revised Schedule to the WTO for 
verification.  A verification sheet of the proposed  changes remains to be prepared by the WTO 
Secretariat, so that a multilateral review of the proposed changes can take place.  Secondly, as of 
1 March 2002, two new Ordinances reduce and simplify customs duties on goods imported by 
travellers crossing the border.2  The main change is an increase in the tolerance level for duty-free 
imports by travellers (section (c) below).  Such  imports are exempt from customs procedures.   
9. As they levy only specific customs duties, Switzerland and Liechtenstein have no specific 
legislation on customs valuation, although the use of specific duties does not avoid the need to assess 
customs value for internal-taxation purposes:  th e value-added tax and motor vehicle tax are both ad 
valorem  (section (ii)(e) below).  Goods are normally cl eared on the basis of their gross weight (in 
most cases);  this dutiable wei ght comprises the actual (net) weight (the actual weight of the goods, 
and the weight of the supports and the immediate p acking materials), plus the weight of the packing 
material for protection during transport.  
10. However, unpacked goods and goods whose packaging does not provide "sufficient" 
protection against transport damage, are liable to an "additional tare", a supplement in weight equal to 
                                                      
1 WTO document WT/L/407, 26 July 2001. 
2 Ordonnance du 30 Janvier 2002 concernant les allégements en matière de redevances dans le trafic 
des voyageurs, Recuil Systématique (RS 631.251.1).  All federal laws are available under their RS number in 
French, at: http://www.admin .ch/ch/f/rs/rs.html, and Ordonnance du Département fédéral des finances du 1er 
février 2002 sur le tarif pour le trafic des voyageurs, RS 631.251.11. WT/TPR/S/141 Trade Policy Review 
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the difference between gross and net weights.3  The tare is calculated by the customs authorities and 
expressed as a percentage of the net weight.4  According to the authoriti es, the vast majority of 
imported goods is cleared according to gross weight.  A modification was made to the " Ordonnance 
sur la Tare " in October 2001.  Its purpose, according to the authorities, was to adapt to new 
terminology (e.g. use of the term "mass" instea d of "weight"), to ch anges in packaging and 
transportation methods, and to simplify the procedur e to request clearance according to net weight.  
11. Customs declaration can be made on a prescribed form, but 90% are made electronically.5  
Overall, customs procedures appear to be simple  and transparent, and appeals against customs 
administration decisions or actions are relatively few.   In Switzerland, 26 decisions were appealed to 
the Customs Appeals Commission "Commission des r ecours en matière de douane" in 2000, 40 in 
2001, 158 in 2002, and 139 in 2003;  in each of these years, between three and five appeals were 
successful.  The authorities have ascribed the increase in appeals to the shift to an auction procedure 
for allocation of tariff quotas, wher eby payment has to be made in full prior to importation.  There 
were eight appeals to the Swiss Federal Court, th e highest federal court in administrative matters,in 
2000,  14 in 2001, eight in 2002, and four in 2003.  
12. There have been no complaints against decisions of the Liechtenstein Customs Office, 
established in 1995 to ensure cons istent implementation in Liechte nstein of the Treaty of the 
European Economic Area (EEA) to which Switzer land is not a party. A Market Control and 
Surveillance Mechanism (MCSM) is aimed at preventing goods solely destined for Liechtenstein 
being put on the Swiss market, via the open border (Box II.1).6 
(ii) Tariffs, other duties, and taxes 
(a) General features 
13. Switzerland and Liechtenstein accord at least MFN tariff treatment to all their trading 
partners, regardless of WTO membership.  Under the 1923 Customs Union Treaty, as amended up to 
1995, the Swiss tariff generally applies to imports to  Switzerland and Liechtenstein;  it contains the 
legal rates.7  Under the Customs Tariff Law8, the Federal Council may modify tariffs for the customs 
union through an ordinance.  The modifications are temporary until their approval by the Federal 
Assembly.  Applied tariffs are, since 2004, available electronically.9 
14. Applied tariffs were reduced autonomously on te xtile and clothing products in January 2002;  
and were temporarily (from August 2003 to May 2004)  reduced on certain fodder as a result of 
domestic shortages due to the drought of summer 2003.10  Applied tariffs were increased on plastic 
granules as a temporary tariff suspension lapsed in 2002.11  Those on sugar were increased in 
October 2002 as part of a reorganization of compulso ry reserve stocks (see section (v) below).  Tariff 
                                                      
3 Ordonnance sur la tare , RS 632.13, Article 2 (3).  Packagin g is considered to provide sufficient 
protection against damage in transport if it complies with the requirements applicable to the type of transport in 
question (new wording since January 2002). 
4 See WTO (2000) for details on additional tares. 
5 The Customs online information on electronic declarations is available at:  http://www.zoll .admin.ch. 
 6 Système liechtensteinois de surveillance du marché et de contrôle, RS 0.631.112.514.6.   
7 Tarif général suisse .  Available at:  http://www.afd.admin.ch/f/firmen/import/generaltarif_f.pdf. 
8 Loi sur le tarif des douanes , RS 632.10. 
9 Available at: http://www.tares.ch. 
10 Réduction des droits de douane pour les fourrages grossiers , 13 August 2003, RS 916.112.232. 
11 Ordonnance du 28 août 1996 concernant la suspension temporaire de droits de douane grevant les 
granulés de matières plastiques, RS 632.113.96.  The tariff suspension for this item was replaced by reduced 
duties on imports of certain products depending their final use. Switzerland and Liechtenstein WT/TPR/S/141 
 Page 45 
 
 
quotas apply to agricultural products (283 tariff lines at the HS eight-digit level), and they have been 
modified on several occasions since 2000, mostly as a result of domestic shortages (Chapter IV(2)).  
Seasonal tariffs are levied mostly on fruit and vegetables. 
15. In 2002, the duty collection ratio on non-agricultu ral products (i.e. the ratio of customs duties, 
of about Sw F 300 million, to impor ts, of Sw F 122 billion) amounted to 0.2%.  This low ratio reflects 
the generally low level of MFN tariffs on non-ag ricultural imports and the large number of 
preferential agreements providing for quasi-duty-free trade in non-agricultural products.12  In contrast, 
the corresponding ratio for agricultural products was 10.2%, on imports valued at Sw F 8.5 billion.  
Furthermore, this ratio has increased from its 2000 level (9.9%).     
(b) Tariff structure 
16. The 2004 tariff, as notified by Switzerland to th e WTO's Integrated Database, has 8,482 lines 
at the HS eight-digit level.  It comp rises specific duties exclusively.  The ad valorem equivalents 
(AVEs) used in this analysis are calculated as th e ratio of specific duties to import unit values, 
estimated by the ratio of import values to im port quantities/volumes in 2003 (at the HS eight-digit 
level).  The shortcomings of specific duties includ e the disparate levels of protection afforded to 
domestic production of similar goods:  as the basis of th e tariff is (in general) the weight of imported 
goods, its impact tends to be highe r on relatively heavy and cheap goods than for expensive and light 
products within the same tariff line.13  
17. The simple average MFN tariff is estimate d at 9.3% in 2004, up from 8.9% in 2000 
(Table III.1);  the standard devia tion is 42.5%, up from 33.1% in 2000.14  The increase in the 2004 
AVEs over their 2000 levels to a large extent reflects a downward trend in import prices (of 
agricultural products in particular);  th is is a main feature of specific duties.   The coefficient of 
variation of 4.6 (3.7 in 2000) depicts high dispersion of the tariff rates (the ad valorem equivalents)15;  
the high dispersion of the rates is a consequence of  specific tariffs (with highly dispersed AVEs), and 
of very high tariffs on agricultural products and generally low rates on non-agricultural products.  The 
modal interval (56.1% of all the tariff lines,  see Chart III.1) comprises rates ranging from zero 
(excluded) to 5% (included).16   
                                                      
12 Administration fédérale des douanes , Communiqué de presse, 25 November 2003. 
13 See WTO (2000), Box III.1, for details on the shortcomings of specific duties.  In recent years, the 
shortcomings of specific tariffs have also been debated in the context of efforts towards customs law 
harmonization with the EU (Administra tion fédérale des douanes 2001).  
14 The tariff analysis presented in this section excludes 283 lines corresponding to in-quota rates and 
430 lines for which ad valorem  equivalents could not be estimated, and is thus based on 7,769 tariff lines.  See 
also Table III.2. 
15 The coefficient of variation is the ratio of the standard deviation to the average rate. 
16 The modal interval is the range of rates with the highest frequency. WT/TPR/S/141 Trade Policy Review 
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Table III.1 
Structure of the MFN tariff, 2000 and 2004 
  2000 2004 2004  
Bound rates 
1.   Bound tariff lines (% of all tariff lines) 99.0 99.0 99.0 
2.   Duty free tariff lines (% of all tariff lines) 17.2 17.7 15.3 
3.   Non- ad valorem tariffs (% of all tariff lines) 100.0 100.0 99.0 
4.   Tariff quotas (% of all tariff lines) 3.5 3.4 3.4 
5.   Non- ad valorem tariffs with no AVEs (% of all tariff lines) 5.0 5.2 5.5 
6.   Simple average tariff rate 8.9 9.3 12.2 
 Agricultural products (WTO definition)a 34.3 36.2 49.4 
 Non-agricultural products (WTO definition)b 2.3 2.3 2.4 
 Agriculture, hunting, forestry and logging (ISIC 1) 33.5 28.6 40.4 
 Mining and quarrying (ISIC 2) 0.7 0.7 0.7 
 Manufacturing (ISIC 3) 6.8 7.7 9.7 
7   Domestic tariff "spikes" (% of all tariff lines)c 6.3 5.9 6.9 
8.   International tariff "peaks" (% of all tariff lines)d 8.8 8.6 10.3 
9.   Overall standard deviati on of applied rates 33.1 42.5 50.2 
10. "Nuisance" applied rates (% of all tariff lines)e 39.1 39.0 38.4 
a WTO Agreement on Agriculture. 
b Excluding petroleum. c Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 6). 
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%. 
Note: Indicator 1 takes into account all tariff lines (i.e. in -quota and out-of-quota lines);  others exclude in-quota lines. 
Source: WTO Secretariat calculations , based on data provided by the Swiss authorities. 
18. Duty-free treatment applies to 17.7% of all tari ff lines (15.9% of WTO agricultural tariff lines 
and 18.2% of WTO non-agricultural tariff lines), in cluding crude petroleum and natural gas, metal 
ore, certain chemicals, electricity, certain tropical agricultural products (e.g. tea, cocoa, vanilla), raw 
silk, wool, cotton and jute, and products grante d duty-free treatment under the Pharmaceutical 
Initiative17, the Information Technology Agreement, and the Plurilateral Agreement on Trade in Civil 
Aircraft.  Another 39% of tariffs bear non-zero rat es of less than 2% ("nuisance rates") (Table III.1).  
19. The maximum rate (on an AVE basis) is 1,705% and applies to out-of-quota imports of edible 
bovine offal (HS item 0206.2990).18  Most of the highest tariffs are on agricultural products;  this 
partly explains why the simple average tariff on im ports of agricultural products (WTO definition) is 
36.2%. The average tariff on non-agricultural products remains low at 2.3%.  Using ISIC (Revision 2) 
definition, the average tariff is also high in agri culture (28.6%), and low in manufacturing (7.7%) and 
mining and quarrying (0.7%).19  Nevertheless, some tariff peaks (i.e. above 15%) also apply to 
selected non-agricultural products (Tabl es AIII.1, and Chapter IV(3)(i)).  
 
                                                      
17 The list of pharmaceutical  products concerned includes items of HS Chapters 30; and HS headings 
2936, 2937, 2939, and 2941. 
18 Substantial tariff concessions permitted imports of bovine offal for animal feed at Sw F 0.10/100kg. 
instead of the full MFN rate of Sw F 919/100kg. 
19 The ISIC (Revision 2) has three major divisi ons: Major Division 1 (agriculture) comprises 
unprocessed farm, fishing and forestry products.  Major Division 2 covers mining and quarrying. Major Division 3 refers to manufacturing. Switzerland and Liechtenstein WT/TPR/S/141 
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(4.1)
(2.0)(0.9)(17.7)(56.1)
(9.6)
(2.8)(1.5)
05001,0001,5002,0002,5003,0003,5004,0004,5005,000
Duty free >0-5 >5-10 >10-15 >15-20 >20-25 >25-50 >500.010.020.030.040.050.060.070.080.090.0100.0
Figures in parentheses are the shares of total lines. Due to non- ad valorem  duties, they may not sum to 
100%.
WTO Secretariat estimates, based on data provided by the Swiss authorities.Chart III.1
Applied MFN tariff distribution, 2004
Number of tariff lines
Note:
Sourc e:Per cent
Number of lines (% of total)
Cumulative per cent (right hand scale)
 
 
20. Using ISIC (Revision 2), in aggregate, the tariff continues to display negative escalation from 
first-stage goods, with an average tariff rate of 18.6% (mainly because of high tariffs on unprocessed 
agricultural products), to semi-finished products with  an average rate of 4.5%;  and positive escalation 
from semi-finished to finished goods, with an averag e rate of 9.7%.  Positive tariff escalation is most 
pronounced on food products and beverages, and moderate on textiles, leather products (except 
footwear and wearing apparel), rubber products, and certain chemical and basic metal products 
(Chart III.2).  Based on AVEs, these indicators are subj ect to price fluctuations (including variations 
of exchange rates), and do not take into account various duty and tax concessions on imported inputs, 
used mainly in the processing of agricultural pr oducts (see section (f) below):  the incentive schemes 
contribute to increasing tariff escalation and/or the level of effective protection.  
21. In the Uruguay Round, Switzerland and Liechtenstein bound specific customs duties on 
agricultural products, and alternate duties (the higher of specific or ad valorem  tariffs) on other 
products.  All tariff lines at the HS eight-digit leve l are currently bound, except for 86 lines covering 
gas, petroleum, and related products.  As of 1 January 2004, Switzerland and Liechtenstein had 
reduced the bound tariffs on all products to th eir final Uruguay Round levels.  Bound tariffs on 
women's and girls' textiles and clothing were re duced to their final Uruguay Round levels ahead of 
schedule in 2002.20  The average bound rate, at 12%, is higher than the average applied MFN tariff 
because of ceiling bindings on mostly agricultural pr oducts and clothing (some 11% of all tariff lines). 
The bound duties reach some 1,705% (in AVE terms) on ed ible bovine offal, equa l to the applied rate 
mentioned above.   
                                                      
20 RS 0.632.105.141. WT/TPR/S/141 Trade Policy Review 
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Table III.2 
Summary analysis of the MFN tariff (AVEs), 2004  
  Applied 2004 rates 
Description No. of linesa No. of lines 
used Simple avg. 
tariff (%) Range tariff 
(%) Std-dev (%) CV   
Imports 2003
 (US$ million)
Total 8,199 7,769 9.3 0-1705.1 42.5 4.6 95,203.7 
By WTO definitionb        
Agriculture 1,947 1,613 36.2 0-1705.1 87.9 2.4 6,335.7 
Live animals and products thereof 150 131 109.0 0-1705.1 229.4 2.1 528.1 
Dairy products 55 52 77.4 0.6-646.8 113.7 1.5 236.1 
Coffee and  tea, cocoa, sugar, etc. 413 345 29.7 0-381.8 48.0 1.6 1,428.3 
Cut flowers and plants 77 73 23.3 0-418.5 69.4 3.0 463.3 
Fruit and vegetables 488 427 34.1 0-546.9 64.4 1.9 1,286.8 
Grains 82 54 42.8 0-281.9 63.5 1.5 150.0 
Oil seeds, fats, oils and their products 350 217 34.4 0-208 49.5 1.4 237.0 
Beverages and spirits 104 100 23.2 0-260.7 40.5 1.7 1,226.4 
Tobacco 15 13 10.0 0-30.6 11.0 1.1 199.8 
Other agricultural products 213 201 6.6 0-208.2 23.9 3.6 579.9 
Non-agriculture (excl. petroleum) 6,233 6,137 2.3 0-153.4 4.1 1.8 85,452.4 
Fish and fishery products 145 142 1.5 0-73.6 8.7 5.8 400.9 
Mineral products, precious stones and 
precious metals 372 368 1.6 0-25.8 2.6 1.6 7,531.9 
Metals 956 939 1.9 0-30.7 2.4 1.3 5,781.6 
Chemicals and photographic supplies 1,099 1,087 1.1 0-24.3 2.5 2.2 21,792.5 
Leather, rubber, footwear and travel 
goods 181 180 2.1 0-16.5 2.4 1.1 1,822.7 
Wood, pulp, paper and furniture 332 328 4.3 0-23.9 4.5 1.0 6,313.1 
Textiles and clothing 1,136 1,12 3 5.6 0-153.4 6. 5 1.2 5,795.6 
Transport equipment 187 174 1.6 0-10.5 2.0 1.2 9,752.6 
Non-electric machinery 883 863 0.7 0-16.9 1.1 1.5 11,676.4 
Electric machinery 401 401 0.9 0-9.7 1.2 1.3 6,852.0 
Non agricultural articles n.e.s. 541 532 1.3 0-17.8 1.8 1.4 7,733.1 
By ISIC sectorc        
Agriculture, hunting, forestry and 
fishing 780 635 28.6 0-646.8 67.3 2.4 2,226.6 
Mining and quarrying 112 109 0.7 0-15.5 1.9 2.8 2,170.1 
Manufacturing 7,306 7024 7.7 0-1705.1 39.4 5.1 90,807.0 
By stage of processing        
Raw materials 1,255 1052 18.6 0-646.8 54.4 2.9 6,207.3 
Semi-processed products 2,479 2388 4.5 0-381.8 17.2 3.8 17,759.0 
Fully processed products 4,465 4329 9.7 0-1705.1 48.2 5.0 71,237.4 
a The tariff analysis is based on a lower fre quency (number of lines), since lines with no ad valorem  equivalents are  excluded.  
b 19 tariff lines are excluded from both WTO agriculture and non-agriculture definitions (essentially petroleum products).  
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 2003 from UNSD, 
Comtrade database. 
 Switzerland and Liechtenstein WT/TPR/S/141 
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0.05.010.015.020.025.030.035.040.045.0Chart III.2
Tariff escalation by ISIC 2-digit, 2004
Per cent
Sourc e: WTO Secretariat estimates, based on data provided by the Swiss authorities.
All products
Food, beverages
Textiles,
apparel
Wood products
Paper, printing
Chemicals ,
plastics
Non-metalli c
minera l
products
Basic meta l
products
Fabricated meta l
products
Other manufac -
turingNOT APPLICABLEAgricuture
MiningRaw materials Semi-processed Fully processed
 
 
(c) Duty and tax exemptions , concessions, and refunds 
22. Under a 1999 Ordinance, reduced duties are sp ecified for imports of certain products 
depending on their final use.  Eligible products are listed in a 20-page annex to the Ordinance and 
include live swine, animal products, fruit, cereals, fodder goods, oilseeds, edible oils, textiles and 
clothing, some steel products, and aluminium and articles thereof.21  As a result, customs duties are 
close to zero on a large number of products used as inputs.  This provision constitutes the main channel for agri-food imports that are otherwise subject  to prohibitive tariffs (Chapter IV(2)(ii)(b)), as 
well as increasing effective protection on some other manufactures. 
23. Under Article 4 of the Customs Tariff Law (LTaD)
22, the Swiss Federal Council may reduce 
or order the total or partial temporary suspension of duties applicable to imports of certain products to 
the customs union.  In September 2004, no duties were suspended.  Also, under Article 17 of the 
Federal Customs Law (LD)23, and Article 39 of the related Ordi nance, products temporarily exported 
or imported for processing (processing traffic) may qualify for tariff reductions or exemptions if 
required by particular economic interests, more particularly retaining the international 
competitiveness of local products, and if there are no predominant interests to the contrary.  This 
processing traffic scheme is designed to compensate for input-price disadvantages in the production of 
the goods concerned.24  Tariff reductions or exemptions may also be granted on imports of processed 
                                                      
21 Ordonnance sur l'allègement douanier selon l'emploi , 20 septembre 1999, RS 631.146.31. 
22 RS 632.10. 
23 RS 631.0. 
24 See WTO (2000) for details of the sc heme, as well as eligibility criteria. WT/TPR/S/141 Trade Policy Review 
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agricultural products, contingent u pon exports of the same quantity of similar goods (goods of the 
same quality and in the same state).  
24. Under 2002 Ordinances, imports of goods (except certain agricultural products, tobacco 
products and alcoholic beverages) worth up to Sw F 300 (up from Sw F 100 in general) by travellers 
crossing the border are exempt from customs duties. The former distinction between a "border zone" 
(travellers living within 10 km on both sides of th e border) and travellers living outside the border 
zone has been abolished.  Moreove r, the duration of stay outside Switzerland and Liechtenstein is no 
longer taken into account.25 
(d) Tariff preferences 
25. Under the 1923 Customs Union Treaty between Switzerland and Liechte nstein, all goods are 
traded freely between the two countries.  Three agreements - the EFTA C onvention, the 1972 free-
trade agreement concluded between the Europ ean Communities and Switzerland, and the EEA 
Agreement (for Liechtenstein) - provide for free-trad e in most non-agricultural products, subject to a 
valid certificate of origin. Accordingly, with the ex ception of fish oils and fa ts, and of a few (mostly 
fish) products, trade in non-agricultural products is  duty free between the EU and Switzerland.  In 
contrast, agricultural products are not generally subj ect to preferential tariffs when they are imported 
into the customs union. 
26. Switzerland and Liechtenstein grant duty-free treatment to imports under 99.8% of all non-
agricultural tariff lines and from 11 countries that ar e parties to free-trade agreements with EFTA 
(down from 19 prior to the EU enlargement on 1 Ma y 2004), and under the bilateral trade agreement 
concluded between Switzerland and the Faeroe Islands (Chapter II(4)(ii)  and Table III.3).  All non-
agricultural products are duty-free, except fish oils  and fats, and chemical based preparations for 
animal feed (HS 3824.9091 with an MFN ad valorem  equivalent tariff of 19%).  In addition, 
preferences are granted on a limited range of agricu ltural products under these agreements, as well as 
under bilateral agreements on agricultural pr oducts concluded with a number of countries.26  A s  a  
result, the agricultural (WTO definition) preferen tial tariff average is 34.6% to 35.7% depending on 
the country, compared with an MFN tariff average of 36.2%. 
27. Under their Generalized System of Preferences (GSP) scheme, Switzerland and Liechtenstein 
grant non-reciprocal preferential tariff treatment  to all developing countries (DCs), as well as 
additional preferences to the least developed countries (LDCs), based on the UN definition. DCs 
enjoy duty-free and quota-free access for most industr ial products, with the exception of textiles and 
clothing for which a tariff reduction of 50% is gran ted.  On agricultural products, DCs are entitled to 
substantial reductions for tropical  fruit and vegetables, seafood, and fish.  A preferential tariff quota 
allows duty-free imports of 7,000 tonnes of raw cane sugar.  LDCs are entitled to additional 
preferences for some agricultural products (HS Chap ters 1-24), in the form of 55-75% reductions of 
the MFN (out-of-quota if applicable) tariffs, a nd to duty-free quotas for oilseeds and products. 
                                                      
25 Prior to the Ordinances, travellers who spent mo re than two days abroad were entitled to duty-free 
imports of goods worth up to Sw F 300 (Sw F 100 plus Sw F 200).  Limits for cross-border shopping were much 
lower. 
26 With Bulgaria (RS 0.632.312.141 ), with Croatia (RS 0.632.312. 911), with the Faeroe Islands 
(RS 0.632.313.141), with Israel (RS 0.632.314.491), with Jordan (RS 0.632.314.671), with FYROM 
(RS 0.632.315.201.1), with Morocco (RS 0.632.315.491), with Mexico (RS 0.632.315.631.1), with the 
Palestinian Authority (RS 0.632.316.251), with Romania (RS 0.632.316.631), with Singapore (RS 0.632.316.891.11), and with Turkey (RS 0.632.317.631).   Switzerland and Liechtenstein WT/TPR/S/141 
 Page 51 
 
 
Table III.3 
Preferential tariff by country grouping, 2004 
%, AVE basis 
Country Agriculture Non-agriculture 
 Average % free Average % free 
Bulgaria 35.2 21.2 0.0 99.8 
Croatia 35.7 19.8 0.0 99.8 
Czech Republica 35.4 18.7 0.0 99.8 
EFTA 34.5 25.0 0.0 99.9 
Estoniaa 35.3 20.3 0.0 99.8 
European Union 34.6 22.0 0.0 99.3 
FYR of Macedonia  35.1 22.2 0.0 99.8 
Hungarya 35.0 21.1 0.0 99.8 
Israel 34.7 25.2 0.0 99.8 
Jordan 35.2 21.9 0.0 99.8 
Latviaa 35.3 20.3 0.0 99.8 
Lithuaniaa 35.3 20.3 0.0 99.8 
Mexico 35.4 25.1 0.0 99.8 
Morocco 34.9 23.9 0.0 99.8 
Faeroe Islands 36.1 17.2 0.0 99.8 
Polanda 34.7 23.6 0.0 99.8 
Romania 35.2 21.1 0.0 99.8 
Singapore 35.1 23.0 0.0 99.8 
Slovak Republica 35.4 18.7 0.0 99.8 
Sloveniaa 35.4 18.5 0.0 99.8 
Turkey 34.8 25.6 0.0 99.8 
West Bank and Gaza Strip 35.3 19.3 0.0 99.8 
Generalized System of Preferences (GSP) 34.2 31.9 0.5 82.8 
Least-developed countries (LDCs) 24.1 45.8 0 99.8 
MFN 36.2 15.9 2.3 18.0 
a Agreement replaced by Switzerland's bilateral agreem ent with the EU following EU accession on 1 May 2004. 
Source: WTO Secretariat estimates, based on data provided by the Swiss authorities. 
28. The authorities have indicated that the GSP utilization rate (i.e. the share of imports actually 
made under the GSP scheme in total GSP eligib le imports) averages around 55%, the remainder 
entering under MFN treatment. Around 2.5% of Switzer land's imports are carried out under the GSP-
regime. The largest beneficiaries of the Swiss a nd Liechtenstein GSP are China (around one third of 
all GSP imports), and India (around 15%).  
29. Cyprus;  Hong Kong, China;  Mexico;  the Repub lic of Korea;  and Si ngapore were graduated 
(excluded) from the Swiss and Liechtenstein G SP treatment between 1997 and 2000.  Croatia, the 
FYR of Macedonia, Jordan, Morocco, Malta, and th e West Bank of Gaza Strip have since been 
graduated (following the signing of bilateral trade agreements or, in the case of Malta, following its 
EU accession).  Albania, and Bosnia and Herzegovi na, were granted LDC tariff preferences between 
1 April 2001 and 31 March 2004;  they have since be en included in the group of developing countries 
eligible for GSP benefits. As of 1 April 2004, Senegal was moved from the list of developing 
countries for GSP treatment to the list of LDCs. WT/TPR/S/141 Trade Policy Review 
Page 52 
 
 
(e) Other duties and taxes 
30. Switzerland and Liechtenstein have bound "other duties and charges" on imports at the zero 
rate.  Internal taxes collected on both domestic production and imports, comprise the VAT, the motor 
vehicles and mineral oils tax, and the tax on alcoholic beverages and tobacco. 
Value-added tax (VAT) 
31. The VAT system, which was previously regulated via an ordinance, became the subject of a 
new law in force since 1 January 2001.27 Since then, the reduced rate on "essential" products and 
services (e.g. items for personal consumption,  including cattle, poultry, fish, and medicine, 
periodicals, food, non-alcoholic beverages, radio and broadcasting services) was increased from 2.3% 
to 2.4%; the special rate on hotel services (only accommodation and breakfast) was increased from 
3.5% to 3.6%; and the standard rate was increased  from 7.5% to 7.6%.  The VAT is levied on the 
customs-duty-inclusive c.i.f. price of imports and on the sale price of locally produced goods; exports 
are "zero-rated" and the VAT is refunded on inputs used for export production.  Goods and services 
excluded from VAT include educational, cultural, and health services, and services performed by 
institutions for social welfare, assistance and security , as well as official stamps.  Under a bilateral 
treaty of October 1994, the same VAT system is ap plied by Liechtenstein, and the Liechtenstein VAT 
legislation is based on Swiss law.28 Taxes collected by Swiss authorities are transferred to 
Liechtenstein according to an agreed ratio. 
Motor vehicles, mineral oils and volatile organic compounds (VOC) 
32. A 4% motor vehicle tax is levied for fiscal purposes on the invoice price for a contract of sale 
or commission, or on the catalogue price in all other cases.29  The tax basis on imports is the customs-
duty-inclusive c.i.f. value;  the tax authority ma y increase the taxable value by adding the price of 
missing parts of incomplete or unfinished vehicles.30 
33. The mineral oil tax, and the surtax, both levi ed on certain mineral fuels and oils, organic 
chemicals, lubricating preparations, prepared add itives for mineral oils, and mixed alkylbenzenes, are 
consumption taxes.31  These taxes amounted to almost  10% of federal revenues in 2003 
(Chapter IV(3)(ii)). Rebates are granted to ag ricultural and concessionary public transport.   
34. In addition, since 1 July 1998, an incentive tax applies to extra-light heating oil of a sulphur 
content of more than 0.1%. It is collected at th e border at a rate of Sw F 12 per 1000 kg.  Since 
1 January 2000, another incentive tax has been  collected on volatile organic compounds (VOC).32  
                                                      
27 Loi fédérale du 2 septembre 1999 régissant la taxe sur la valeur ajoutée, RS 641.20. 
28  Law of 16 June 2000 on VAT,  LR 641.20, Law Gazette 163/2000; and related Ordinances. 
29 Loi fédérale sur l'imposition des véhicules automobiles, RS 641.51 and related Ordinance, 
RS 641.511.  
30 The following are not subject to the tax:  chassis mounted with cabs;  certain specified "motor 
wagons";  motor vehicles of a total weight exceeding 3,50 0 kg., i.e. those subject to the charge on heavy goods 
vehicles;  electric motor vehicles;  mo tor vehicles for invalids, admitted duty free;  motor vehicles admitted duty 
free as Confederation war equipment;  new material input into "repair an d improvement activities";  and motor 
vehicles imported as personal belongings, wedding gifts, inherited goods, or in the framework of diplomatic or 
consular relations. 
31 Impôt et respectivement surtaxe sur les huiles minerales, Ordonnance sur l'imposition des huiles 
minérales , Articles 18-19, RS 641.611. 
32 The VOC , RS 814.018, is levied for environmental purposes, and covers items of HS subheadings 
2710.0024 and 2710.0014.  The rate is  Sw F 10.14 per 1,000 litres measured at 15oC;  it applies to extra-light 
heating oils of a sulphur content by weight of more than 0.1%.     Switzerland and Liechtenstein WT/TPR/S/141 
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Since 1 January 2003, the rate of the tax is Sw  F 3 per kg.  Finally, as from 1 January 2004, an 
incentive tax of Sw F 0.03/litre on petrol and diesel w ith a sulphur content of more than 0.001% was 
introduced. It is also collected at the border.  Th e revenue of these three incentive taxes is by law 
distributed equally between all members of the popul ation, via the mandatory health insurance.   
Alcoholic beverages and tobacco  
35. Imports and domestic production of  alcoholic beverages are s ubject to a monopoly (excise) 
duty of Sw F 29 per litre of pure alcohol, both for fiscal purposes and to discourage consumption.33 
However, a reduced rate of Sw F 14.5 applies to wi nes and other alcoholic beverages with an alcohol 
content ranging from 15% to 22%.  Wines with an alcohol  content of less than 15% are not taxed.  In 
February 2004, a new tax was introduced on "alcopops " at the rate of Sw F 116 per litre of pure 
alcohol.34 
36. Beer is subject to a tax of Sw F 24.75 per hl, also levied for fiscal purposes.  Until 
1 January 2002, the rate was Sw F 23.79 per hl.  Th is tax applies equally to imports and to domestic 
production.35   
37. Imports and domestic production of cigarettes, cigars, pipe tobacco, and rolling paper and 
other tobacco products are subject to excise taxes, both for fiscal purposes and to discourage 
consumption.36  The retail price of a pack of 20 cigarettes of the most sold brand in Switzerland is 
currently about Sw F 5.30.  
Salt 
38. Following its EEA membership, Liechtenstein in troduced an excise tax, currently ranging 
from Sw F 0.94 per tonne of salt used by industries to  Sw F 175 per tonne of unpacked kitchen salt, to 
avoid price differences that could arise because of the Swiss state monopoly over salt.  In order to 
prevent circumvention with salt originating in an EEA country, the MCSM (Box II.1) applies between 
Liechtenstein and Switzerland.   
(iii) Rules of origin 
39. On behalf of the customs union, Switzerland no tifies regularly any new agreement or change 
in the union's system of rules of origin to th e WTO.  There have never been any disputes or 
complaints in the WTO regarding the rules of origin applied by Switzerland or Liechtenstein. 
(a) Non-preferential rules 
40. Switzerland and Liechtenstein apply the same non- preferential rules of origin, as defined in 
the Ordonnance sur l'origine (OOr - RS 946.31), which has not changed significantly since 1993.37 
Under these rules of origin, products are considered  as originating from a country if they are either 
wholly obtained or "sufficiently transformed" in  that country. For the "sufficiently transformed" 
condition to be met, non-originatin g components must not exceed 50% of the f.o.b. export value, or 
                                                      
33 Ordonnance sur l'alcool , RS 680.11. 
34 Loi fédérale sur l’alcool, RS 680, Article 23bis (2bis).  
35 Ordonnance du 25 novembre 1998 fixant le taux de l’impôt sur la bière, RS 641.413, as amended.  
36 The legislation is the Loi fédérale sur l’imposition du tabac, RS 641.31 as amended;  and the 
Ordonnance sur l'imposition du tabac, RS 641.311 as amended. 
37 See also Ordonnance du Département fédéral de l'économie publique du 15 août 1984 sur l'origine, 
RS 946.311. WT/TPR/S/141 Trade Policy Review 
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the four-digit HS tariff heading of the final product must differ from that of the foreign inputs.  
Special rules, defined in Annex 4 to the ordinan ce, apply to certain products, mainly chemicals, 
textiles and clothing, metals and machinery.38  In general, "minor" operations (e.g. packaging, 
blending, and mixing) do not confer origin even if th ey contribute to 50% of the value or a change in 
the four-digit HS tariff heading.  Non-preferentia l rules of origin are administered primarily by 
chambers of commerce. They also issue certificat es for Swiss origin on the basis of the OOr. The 
State Secretariat for Economic Affairs (seco) s upervises these bodies and can determine origin in 
special cases.   
(b) Rules of origin for non-reciprocal preference  
41. On behalf of the customs union, Switzerland notified the WTO of the 1996 Ordinance 
containing the union's rules of origin for non-reciprocal preference purposes in November of that year.
39  Preferential rules are administered by the Customs Administration, which may verify the 
origin of the products concerned through mutual assistance with the exporting country.  Following this verification, products may qualify for ta riff preferences under the relevant schemes.   
42. In general, the preferential rules of origin requi re a local content of at least 50% of the value 
added of the product.  For certain HS chapters, a change of tariff heading or certain working or 
processing rules must be met in addition to or inst ead of the main origin rules. Under a general 
"tolerance rule", preferential status  is maintained if the share of third-country components – otherwise 
not accepted – does not exceed 5% of the ex-factory price of the product.  Cumulation is possible with materials from the customs territory of Switzerla nd and Liechtenstein, and also among members of 
regional economic groupings.  The Ordinance was modified in 2004, to reflect the recent tariff 
initiative by Switzerland and Liechtenstein in favour of LDCs.  Furthermore, rules of origin were 
modified to reflect the latest HS 2002 changes. 
43. Most non-agricultural products are subject to  low or duty-free MFN tariffs.  Therefore, 
preferential rules of origin have a commercial si gnificance only for products on which preferential 
margins are still substantial to developing countries under the G SP, or to LDCs for which all 
industrial tariffs are duty-free.  In many cases, the administrative costs of co mpliance with the specific 
rules of origin may exceed the benefit of the margin  of tariff preference.  Nevertheless, imports under 
the GSP cover the whole range of products.   
(c) Preferential rules in the context of free-trade agreements 
44. Preferential rules of origin under free trade agreements are administered by the Customs 
Administration.  The authorities note that rules of origin are identical or very similar across the 19 
free-trade agreements (FTAs) in place at the beginni ng of 2004, thus limiting the potential complexity 
that could result from their multiplicity for the same products.  In addition, specific rules of origin 
have been stipulated for agricultura l products in the context of bilate ral agreements with a number of 
countries.
40  The number of different sets of rules of origin decreased strongly with the accession of 
ten countries to the EU in May 2004. 
                                                      
 38 The countries of origin and of exportation of textiles and clothing must be specified in the import 
declaration to trace changes in the pattern  of international pr oduction and trade. 
39 Ordonnance relative aux règles d'origine régissant l'octroi de préférences tarifaires aux pays en 
développement, RS 946.39. 
40 The bilateral agreements on agricultural products are available online at: 
http://www.zoll.admi n.ch/f/gesetze/dokum ente/d30/d30.php. Switzerland and Liechtenstein WT/TPR/S/141 
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45. The preferential rules of origin governing trade are provided for by the 1972 Swiss-EU Free 
Trade Agreement (SEFTA), the EFTA Conve ntion, and Switzerland’s other FTAs.41  These rules of 
origin are very similar to those applied for non-r eciprocal preference purposes. In addition, both the 
the EFTA and SEFTA rules facilitate the incorpora tion of semi-manufactured inputs – other than 
textiles and clothing - from third countries, thr ough a tolerance rule, as well as processing activities 
outside the preferential zone, without jeopardizing the preferential status of the final product.  Under 
the tolerance rule, certain semi-manufactured input s from third countries may constitute up to 10% of 
the ex-factory price of the final product.  The to lerance rule allows for temporary exportation, 
provided that the value-added outside the preferential area does not exceed 10% of the ex-factory 
price. Alternative rules for originating status of chemicals and plastics exist under certain FTAs.  They 
allow the incorporation of non-originating third-count ry raw or semi-finished materials up to 40% for 
items of HS Chapters 28-38 (except for HS Chapte r 30), 25% for items of HS Chapter 39 and between 
25% and 40% of the ex-works price for items of HS Chapters 84-91 and 94. 
46. The concept of pan-European cumulation was intr oduced in 1997; it allows the cumulation of 
inputs from the EU, the EFTA states, most central and eastern European countries42, and Turkey. The 
cumulation criteria stipulate that an input that meets the preferential rules of origin in any country of 
the pan-European cumulation area can be used as an "originating input" in the determination of the 
origin of a new good (produced in another country of the area).  
(d) EEA origin 
47. Imports of EEA origin products from EEA memb ers to Liechtenstein and exports of EEA 
origin products from Liechtenstein to EEA members are governed by Protocol 4 of the EEA Treaty.  
However, exports by Liechtenstein of goods originating in Switzerland are subject to the provisions of 
the 1972 Swiss-EU Free Trade Agreement (SEFTA).   The origin regimes in the SEFTA, the pan-
European Agreements and the EEA Agreement are al most identical.  The only fundamental different 
between the EEA origin regime and the SEFTA is th e full cumulation which can be used within the 
EEA. 
(iv) Anti-dumping, countervailing, and safeguard measures  
48. Switzerland and Liechtenstein do not have a ny anti-dumping, countervailing or safeguard 
measures in place;  and they do not maintain or intend to establish any specific anti-dumping or countervailing regulations, or re gulations on safeguards as envisaged under GATT 1994 Article XIX.  
Under both countries' legal systems however, public in ternational laws and international treaties such 
as the WTO Agreements (including on safeguard s, anti-dumping, subsidies and countervailing 
measures, and on textiles and clothing), form an inte gral part of the national legislation and can be 
invoked directly without any implementing legislati on.  In addition, under Article 5 of the WTO 
Agreement on Agriculture, Switzerland and Liechtenste in have reserved their right to invoke the 
special safeguard clause for all agricultural products subject to tariff quotas although no such 
measures have been introduced since 2000. 
49. In practice, Article 7 of the Swiss Customs Tariff Law allows any modification in tariffs, 
including increases, when the na tional interest is at stake
43;  Article 11 provides for temporary tariff 
increases on agricultural products in application of  safeguard provisions under international trade 
agreements;  and Article 1 of the Federal La w on External Economic Measures  provides for non-
                                                      
41 The EFTA Convention, th e EEA Agreement, and other EFTA Ag reements are available online at:  
http://secretariat.efta.i nt/Web/LegalCorner/. 
42 Cyprus and Malta were included through their new EU membership. 
43 Loi sur le tarif des douanes , RS 632.10 WT/TPR/S/141 Trade Policy Review 
Page 56 
 
 
tariff measures in emergency situations (subject to approval by Parliament within six months).44 The 
seco is the competent authority for investigations into alleged cases of dumping or subsidization in 
Switzerland, and the Office for Foreign Affairs in Liechtenstein.   
(v) Import prohibitions, licensing, and controls  
(a) Import prohibitions 
50. Products subject to import prohibitions are listed in Table III.4, together with the underlying 
regulations and their purposes.  Certain trade prohibi tions (covering both imports and exports) are also 
maintained as a result of UN Security Council sa nctions, or EU sanctions also implemented by 
Switzerland and Liechtenstein.  Recently implemente d UN sanctions include an import prohibition on 
timber, wood products, and rough diamonds from Liberia.45 
51. On 1 January 2003, the ordinance on interna tional trade in rough diamonds (RS 946.231.11) 
entered into force.  This ordinance implements the Kimberley Process Certification Scheme (KPCS) 
aimed at combating international trade in conflict di amonds.  Of particular rele vance is that, according 
to the KPCS, trade in rough diamonds is permitted only among participants of the scheme.  Based on the KPCS and the above-mentioned ordinance, Sw itzerland does not allow imports of rough diamonds 
being shipped from a country that is not a KPCS participant, neither are exports of rough diamonds 
allowed to countries not participating in the KPCS.  
Table III.4 
Selected products subject to import prohibitions, 2004 
Products Regulation/agreement Purpose 
Endangered species and their products CITES Environment 
Toxic chemical substances 
 Ordonnance sur l’interdiction de substances 
toxiques (RS 813.39) Environment, public health 
Nuclear, chemical and biological  
weapons/anti-personnel mines Loi fédérale sur le matériel de guerre 
(RS 514.51, Articles 7 and 8) Security 
Certain chemical substances Annex 3.1, Ordinance on Environmentally 
Hazardous Substances Environment/public health and safety 
Potatoes, potato plants, certain soil 
substrates, vine, fruit trees from non-
European countries (prohibition concerns only certain plant species intended for planting) Ordinance on Plant Protection, Article 16 
and annex 3 Plant protection 
Ozone depleting substances Ordonnance sur les substances dangereuses 
pour l’environnement (RS 814.013) Environment 
Certain carbon-zinc batteries and alkali-
manganese batteries/accumulators Protocole à la Convention sur la pollution 
atmosphérique  transfrontière à longue 
distance, de 1979, relatif aux métaux lourds (RS 0.814.326) Environment 
Rough diamonds shipped from a country 
that is not a participant in the Kimberley Process Certification Scheme (KPCS).  Ordinance on the international trade in 
rough diamonds (RS 946.231.11)  Combating international trade in conflict 
diamonds 
Timber wood products and rough diamonds from Liberia Ordinance instituting measures against 
Liberia (RS 946. 208.1)  Implementation of Security Council 
resolutions on sanctions 
Source:  WTO Secretariat, based on informa tion provided by the authorities. 
                                                      
44Loi fédérale sur les mesures économiques extérieures,  RS 946.201. 
45 Ordonnance du 27 Juin 2001 instituant des mesures à l'encontre du Libéria,  RS 946.208.1. Switzerland and Liechtenstein WT/TPR/S/141 
 Page 57 
 
 
(b) Import licensing, controls, and mandatory stock monitoring 
52. The import licensing regime of Switzerland and Li echtenstein was last notified to the WTO in 
2002;  in 2003, the authorities indicated that no change had taken place in the licensing procedures 
since 2002.46  Although a September 2002 ordinance gives the Federal Council the right to submit 
iron and steel and their products to import licensing47, according to the authorit ies this has not been 
put into practice. A fee is charged for most licen ce applications;  additional charges are levied if 
additional tests or controls are performed.  Appeals against decisions relating to licensing are made to 
the administrative authority or to the Appeals Co mmission and, in the second instance, to the Swiss 
Federal Court.   
53. Import controls are maintained mainly on hea lth, safety, security, morality, phytosanitary and 
environmental grounds (section (vii) below).  Trad e in gold and certain products containing gold for 
industrial purposes is also subject to certain controls as laid down in a 1933 federal law48 and the 
related ordinance (RS 941.311).   
54. Switzerland and Liechtenstein still apply licensing to imports of agricultural products subject 
to tariff quota under their minimum market access commi tments (see Chapter IV(2) for details).  For 
these products, the licensing system is non-automatic for imports within quotas and automatic for out-
of-quota imports.  Fees are payable for the administration of tariff quotas. 
Compulsory stockholding 
55. In accordance with Article 8 of the Federal Law on National Economic Supply49, the Federal 
Council may subject goods considered of vital import ance to compulsory holding of stocks and, to 
that end, may place the products concerned under the import-licensing regime.  The licence is 
conditional upon the conclusion of a reserve stock c ontract. Through this 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 a nd the possible decrease in price of the goods.  The 
guarantee funds are financed either through contributi on on imports (e.g. compulsory stocks of sugar) 
or on sales (e.g. compulsory stocks of medicines) . The costs of compulsory stockholding are passed 
on to consumers; for example, for one litre of gaso line, the cost is to Sw F 0.0053. These provisions 
are also applicable to Liechtenstein;  the competen t authority in Liechtenstein is the Office of Civil 
Protection and Emergency Management ( Amt für Zivilschutz und Landesversorgung ).   
56. According to a notification by Switzerland on behalf of the customs union, the following 
goods are currently under the import licensing regime  for compulsory stock purposes (in parentheses 
are the bodies that grant the licences under the authority of the Federal Office for National Economic 
Supply): 
 - liquid fuels (Swiss Central Office for the Import of Fuels, CARBURA); 
  - sugar, rice, edible oils and fats, coffee, and different kinds of cereals (RéserveSuisse, 
which resulted from the 2003 merger of th e Fiduciary Office of Swiss Foodstuff 
                                                     
 
 46 WTO documents G/LIC/N/3/CHE/4, 8 August 2002 and G/LIC/N/3/CHE/4/Add.1, 14 April 2003. 
47 Ordonnance du 11 septembre 2002 sur la surveillance de l’importation de certains biens industriels,  
RS 946.201.1. 
48 loi fédérale du 20 juin 1933 sur le contrôle du commerce des métaux précieux et des ouvrages en 
métaux précieux (RS 941.31). 
49 Loi fédérale sur l’approvisionnement économique du pays , RS 531. WT/TPR/S/141 Trade Policy Review 
Page 58 
 
 
Importers, OFIDA, with the Fiduciary Office  of Swiss Holders of  Compulsory Cereal 
Stocks, OSSOC50); and 
  - fertilizers (Fiduciary Office of Swiss Own ers of Compulsory Stoc ks of Fertilizers, 
OFSE). 
 57. The authorities have indicated that licences a llow imports of the goods from all countries, 
without quantitative restrictions and for an unlimited pe riod of time;  and that if a group of goods is 
subject to the compulsory stockholding as well as to  a tariff quota regulation, only one general import 
licence will be delivered based on the National Economic Supply legislation.   
58. In October 2002, the authorities decided to redu ce the volume of mandatory stocks of sugar, 
which resulted in a lowering of storage costs.  In turn, this made possible a reduction of the  guarantee 
fund from Sw F 21 to Sw F 14 per quintal (100kg.) of im ported sugar.  In order to maintain the same 
level of import protection for sugar, the authorities decided to increase customs duties on sugar by Sw F 7 per quintal.
51  The obligation for an import licence for lubricating oil was abolished on 
1 January 2003.52  Also, since 1 April 2004, import li cences are no longer compulsory for 
antibiotics.53   
59. In general, the level of compulsory reserves cu rrently 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). 
(vi) Local-content and local- purchase requirements 
60. The " prise en charge " system requires traders to purchase domestic production in order to be 
allowed to import specified quantities of certain  agricultural products, such as milk powder and 
poultry (Chapter IV(2)).  Specified percentages of local content are also required under certain export 
incentive schemes (section (3)(iv) below). 
61. Provisions are in force in both Switzerland and Liechtenstein for the "b roadest possible use" 
of European works (based on, inter alia , conventions and agreements), with particular attention to 
domestic audiovisual productions.54 
(vii) Standards and other technical requirements 
62. Since 2000, the gradual alignment of Swiss tec hnical regulations and standards on those of 
the EU has continued.  A bilateral agreement on mutual recognition in relation to conformity 
assessment (Mutual Recognition Agreement, MRA) between Switzerland and the EU entered into 
force on 1 June 2002 (Chapter II(4)(ii)(b)).  The ag reement, which establishes mutual recognition of 
proof of conformity with technical regulations, is  likely to significantly facilitate trade with EU 
partners, as well as MFN trade to the extent that more products approved for sale in the EU can now 
be offered for sale in Switzerland without further conformity assessment. It covers currently 15 
product categories.   
                                                      
50 Additional information is available online a t:  http://www.reservesuisse.ch/index.php.  
51 Under the WTO Agreement on Agriculture, the contributions to the mandatory-stock guarantee fund 
were tariffied by Switzerland for sugar,  edible oils and fats, and fodder.  
 52 RS 531.215.48. 
 53 RS 531.215.31. 
54 WTO documents GATS/EL/83 and 83-A, 15 April 1994 and 15 April 1995 respectively. Switzerland and Liechtenstein WT/TPR/S/141 
 Page 59 
 
 
63. In Liechtenstein, a 1995 Act on the marketab ility of goods, as amended in 2000, provides for 
the sale of goods produced in conformity with eith er the Swiss or the EEA ru les.  In practice, EEA 
originating non-agricultural products that do not co mply with the Swiss regulations, such as medical 
products, may be imported to Liechte nstein under the MCSM (Box II.1). 
(a) Regulatory framework 
64. In Switzerland, both technical regulations (as defined in Annex I of the WTO Agreement on 
Technical Barriers to Trade (TBT Agreement)) a nd SPS measures (as described in Annex I of the 
Agreement on the Application of Sanitary and Ph ytosanitary Measures (SPS Agreement)) can be 
initiated on a department's or agency's initiative, as di rected by Parliament, or in response to a request 
by the public.  The Law on Technical Barriers to  Trade (LETC) sets rules for the establishment or 
modification of (voluntary) standards and technical regulations in areas of federal competence.55 The 
LETC aims to transpose the principles of the TBT Agreement into domestic legislation and to ensure their systematic application. According to this law,  Swiss technical regulations  have to be aligned on 
those of its major trading partners. Since 20 00, the LETC has been amended to include the 
notification of draft technical regulations on pro cesses or services in accordance with international 
agreements.
56   
65. The Swiss Parliament generally confers its powers for establishing technical regulations on 
the Federal Council, and the departments, which issue implementing ordinances in accordance with 
the LETC.  Regulations are initiated and discussed at the level of the relevant agencies (e.g. 
Swissmedic and OFCOM).  Private citizens, industry, and organizati ons, both domestic and foreign, 
can participate in an agency’s ru lemaking activities in a variety of ways, e.g. by submitting proposals, 
comments, and petitions.  
66. In the past, both technical regulations and SPS measures on certain products could be set at 
sub-federal (generally cantonal) level.  For ex ample, in the case of construction products, the 
competences for product regulations were, until 2001,  still shared between the Confederation and the 
cantons. On 1 January 2001, the federal law on the pl acing on the market of construction products and  
its implementing Ordinance entered into force.57 This federal legislation unified the 26 different legal 
frameworks that were applicable; it is, according to th e authorities, compatible with EU legislation.  
The authorities indicate that competence for techni cal regulation for products is now entirely at the 
federal level. In many areas however, the cantons remain responsible for the implementation and the 
market surveillance. 
67. Products offered for sale in the customs union must be labelled in at least one of the official 
languages (German, French, Italian).58  Depending on the product, the label or packaging may be 
required to indicate the specific name of th e product, the metric measure, the price59, the expiry and 
"best before" date, a quantitative ingredient declara tion (as appropriate), and ingredients and additives 
in decreasing order of weight.  Mandatory labelling and packaging requirements apply mostly to pre-
packaged foodstuffs, to products containing geneti cally modified organisms (see section (vii)(d)), 
                                                      
55 Loi sur les entraves techniques au commerce , RS 946.51. 
56 The modifications are available online at:  http://www.admin.ch/ch/f/ff/2001/ 
4790.pdf. 
57 Loi sur la mise en circulation des produits de construction , RS 933.0;  and  Ordonnance sur la mise 
en circulation des produits de construction , RS 933.01. 
58 WTO (2000). 
59 According to article 7 of the Ordonnance sur l’indication des prix, RS 942.211, the unit price of a 
consumer product must appear either on the product or in immediate proximity (price tag, shelf, price list). WT/TPR/S/141 Trade Policy Review 
Page 60 
 
 
other consumer products, and techni cal appliances. Household appliances and light bulbs are subject 
to mandatory energy consumption labelling .60  
68. Imports of meat, eggs, and of their products , when produced in a manner prohibited in 
Switzerland, must be labelled as such. These banned pr oduction methods are:  the use of  hormones, 
antibiotics and other antimicrobial substances as pe rformance stimulators (for meat);  and the rearing 
of hens in battery cages (for eggs). The declarati on requirements apply from the points of distribution 
to the final consumers, both in retail trade and in establishments where me als are prepared for the 
public, such as restaurants or hospitals.61  The Ordinance for meat, was amended in 2003.  
Accordingly, products originating in countries with  equivalent regulatory frameworks relating to the 
production methods in question are exempt from th e labelling requirement.  Furthermore, an 
exemption may be obtained by an individual pr oducer based on certification of his production.62  
69. In general, the Government's efforts toward s harmonization appear to have resulted in a 
considerable reduction in the number of Swiss techni cal requirements that deviate from regulations in 
neighbouring countries.  For example, Swiss requi rements for sanitary fittings, telecommunications 
equipment, and motor vehicles, which in the past differed from those of neighbouring countries with 
considerable effects on import costs, appear to have been effectively harmonized with EU 
requirements. Requirements continue to differ in certain foodstuffs, measuring instruments, precious 
metals, dangerous substances, and chemicals an d pesticides.  The authorities expect further 
harmonization for chemicals and pesticides for 2005. 
70. Voluntary standards setting is in the hands  of private bodies grouped under the Swiss 
Association for Standardization ( Association Suisse de normalisation , SNV), an association 
comprising about 600 members, including private as sociations, institutions, and representatives from 
the public sector. Participants are from all economic sectors, for example, the Swiss Association of 
Machinery Manufacturers, and Electrosuisse (SEV , the Swiss association for electrotechnics).63  The 
SNV is Switzerland's enquiry point under the TBT Agreement;  it also accepted the WTO TBT Code 
of Good Practice for the Preparation, Adoption, and Application of Standards on behalf of its 
members.  The SNV is a member of, inter alia , the International Organization for Standardization 
(ISO) and the European Committee for Standardiza tion (CEN).  The SEV is the Swiss member body 
of the International Electrotechnical Commission (IEC). 
71. The Liechtenstein Chamber of Industry and Comme rce is a member of the Swiss Association 
for Standardization.  Like other members, the Cham ber may initiate standards that are discussed at the 
level of the relevant agencies;  Liechtenstein do es not have its own standards.  A 1996 Act and an 
ordinance enable Liechtenstein private companies to  be accredited as testing, inspection, calibration, 
and certification bodies.  Currently, the Liechtenstein  Association for Quality Assurance Certificates 
Company is the accredited certification body for quality managing systems.  Liechtenstein also has  one accredited certification body for environmental management systems. 
72. Some 92% of the 18,210 standards in force in the customs territory corresponded to 
international standards, up from 87% in 2000 and 65% in 1996 (Chart III.3).  Areas where the ratio of 
                                                     
 
60 Ordonnance du 7 décembre  1998 sur l’énergie, RS 730.01.   The energy consumption labelling 
scheme is identical to the respective EU system. The sc heme or amendments to it were notified in 2001 and 
2003 (WTO documents G/TBT/N/CHE/15, 2 October 2001;  and G/TBT/N/CHE/32, 7 November 2003). 
61 Ordonnance du 26 novembre 2003 relative à la déclaration de produits agricoles issus de modes de 
production interdits en Suisse (Ordonnance agricole sur la déclaration , RS 916.51). 
 62 WTO document G/TBT/N/CHE/27, 17 July 2003. 
63 SNV online information.  Available at:  http://www.snv.ch.   Switzerland and Liechtenstein WT/TPR/S/141 
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national to international standa rds has decreased include building products, machinery, and road 
construction.  Reliance on national standards continues to be strong fo r watches and road construction. 
73. In 2003, Switzerland and Liechtenstein notified the WTO that Costa Rica was accepted for 
inclusion in their list of third countries allowed to  export to the customs union organic plant products 
labelled as such.64  Annex 4 to the Ordinance of the Fede ral Department of Economic Affairs on 
organic production contains a list of third countries, whose "organic legislation" is considered to be 
equivalent to the Swiss organic standard a nd thus enjoy – notwithstanding general import 
requirements - free access to the Swiss market.65  This list currently incl udes: Argentina, Australia, 
Costa Rica, EU Member States, Israel, and New Zealand (June 2004). Organic products from 
countries not listed can, however, be imported to Sw itzerland and Liechtenstein on the basis of an 
"individual authorization" issued by the Federal Office for Agriculture. In these cases, the importer 
must prove equivalence of produc tion methods and inspection proce dures with the respective Swiss 
provisions. All imported products must be accompanied by a third party certificate attesting that the product complies with the Swiss (or EU) Organic Standard. 
 
01,0002,0003,0004,0005,0006,000
INB SIA SEV VSM VSS NIHS SICTANationalInternationalChart III.3
Standards in the customs union, February 2004
Note :
Source : 5,901
1,2553,325
2,248
187 73,855
269 142 307813932400Number of standards
INB = cross-sectoral standards;  SIA = building; SEV = electrical equipment; VSM =machinery; 
VSS = road construction; NIHS = watches; SICTA = telecommunications.
Swiss Association for Standardization (Schweizerische Normen-Vereinigung, SNV). 
 
                                                      
64 WTO document G/SPS/GEN/422, 14 August 2003. 
65 Ordonnance du DFE sur l’agriculture biologique, RS 910.181. WT/TPR/S/141 Trade Policy Review 
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(b) Conformity assessment 
74. Following the passage of the LETC in 1995, importa nt efforts have been made to incorporate 
EU conformity assessment procedures into Swiss legisl ation, and to gain recognition in the EU of the 
Swiss conformity assessment system. As a result of  the MRA with the EU, a growing number of 
products made in Switzerland and meeting Swiss regulations can now be exported into the EU 
without re-tested in the EU, and vice-versa. Howeve r, there remain exceptions, which may result in de 
facto import prohibitions, as in the case of recreational craft manufactured before 2001.66   
75. The federal conformity assessment system for st andards, and technical and SPS regulations is 
subject to the LETC.  The LETC (Article 5) stat es that several different conformity assessment 
procedures should be proposed when a technical re gulation is established, and that at least one 
procedure should allow producers or suppliers self-assessment.   
76. To assess compliance, the Government may give  official recognition to an independent 
testing body through accreditation or similar measures.  The Swiss Accreditation Service (SAS), an independent division within the Swiss Federa l Office of Metrology and Accreditation ( Métrologie et 
accréditation suisse , METAS), provides the national system for assessment and accreditation of 
laboratories, inspection, and certification bodies.
67  Its activity is based on the LETC and on an 
accompanying ordinance (OAccD - RS 946.512).68  The Swiss Federal Commission for Accreditation 
(COMAC) acts as a consultative board to the SAS.   
77. The SAS has the exclusive competence for accred itation in Switzerland. It has entered into 
mutual recognition agreements w ith several European accreditation bodies within the framework of 
the European Cooperation for Accreditation, the International Laboratory Accreditation Cooperation 
and the International Accreditation Forum, so as to  encourage European and international recognition 
of Swiss conformity assessments.  Following an a udit of the SAS by the EA in 2002, several changes 
have been made to the OAccD, notably to st rengthen the separation between accreditation and 
metrological responsibilities of METAS.69 
78. In the case of imports, it is primarily the r esponsibility of importers representing foreign 
manufacturers to meet technical regulations – such  as proper marking and safety standards – and to 
ensure that permits, if required, have been obtained in advance of the goods arriving at the border.    
For some products, a declaration or proof of conf ormity or compliance mu st be submitted by the 
manufacturer or the importer upon or prior to importa tion. For example, veterinary certificates must 
be provided for meat and other products of animal or igin.  Assessment of conformity is carried out by 
the border veterinary service for products of animal origin and by the plant protection service for 
plants and plant products.  
                                                      
66 An EU conformity certificate is required (to navi gate in Switzerland) on all foreign (including EU) 
recreational boats regardless of the year of building, but  not on Swiss boats.  Specifically, Switzerland requires 
that the foreign craft, irrespective of origin,  be  in conformity with Regulation 94/25/EC (amendment 
2003/44/EC) on noise and gas emission limits, and be marked with the "CE" certificate of conformity.  
However, no such certificate is delivered for EU boats ma nufactured before 1 May 2001 and, in Cantons such as 
Geneva and Zurich, no procedure exists to test the conformity of boats manufactured abroad.  As a result, boats 
manufactured before 1 May 2001 may be imported but not put in circulation in Switzerland.  According to the 
authorities, Switzerland is in September 2004 discussing possible solutions to this problem. 
67 METAS online information.  Available at:  http://www.metas.ch/en/portraet/addresses.html. 
68 Ordonnance sur le système suisse d’accréditation et la désignation de laboratoires d’essais et 
d'organismes d’évaluation de la conformité, d’enregistrement et d’homologation.   
69 RS 946.512. Switzerland and Liechtenstein WT/TPR/S/141 
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(c) International cooperation on  technical regulations 
WTO participation 
79. Switzerland made 105 notifications to the WTO TBT Committee between January 1995 and 
the end of 2003.  Many of the notifications issued since 2000 report the alignment of Swiss 
regulations on those of the EU.  No notifications of sub-federal measures have been received by the 
WTO.  No notifications have been received from Liechtenstein.  Neither Switzerland nor Liechtenstein have been involved in a WTO dispute under the TBT Agreement.   
80. Most of the Swiss notifications on labelling concern the harmonization of Switzerland's laws 
with those of the EU, notably on chemicals,  pesticides, and household equipment.  Since 2000, 
notifications have been made on products contai ning living genetically modified organisms (see 
below) and on organically produced apicultu re products.  The 1990 Law on the Protection of 
Consumers also provides a framework for producer  and consumer associations to determine product-
related information requirements in consumers' in terest.  If no agreement is reached, the Federal 
Council may issue compulsory labelling requirements.  Moreover, eco-labelling systems are also used 
by companies on a voluntary basis.  No specific tr ade concerns related to labelling by Switzerland 
have been brought to the attention of the TB T Committee.  In 2001, Switzerland issued a 
Communication that called for further analytical work on marking and la belling requirements under 
the TBT Agreement.
70  Subsequently, Switzerland reiterated its  call for the issue of labelling to be 
further discussed in the TBT Committee. 
Harmonization with the EU   
81. Since 1995, Swiss technical regulations have b een gradually aligned on those of the EU in 
many areas.  The bilateral agreement with the EU  on mutual recognition in relation to conformity 
assessment (MRA, RS 0.946.526.81) has been in force since 1 June 2002.71  It includes some basic 
provisions applying to all product chapters a nd two annexes. Annex 1 specifies 15 product areas 
covered by the agreement (Chapter II(4)(ii)(c)), a nd Annex 2 includes the general principles for the 
designation of conformity assessment bodies.  A ccordingly, both Swiss and EU conformity 
assessment bodies are now formally recognized by the EU–Switzerland joint committee.  Another 
major result of the bilateral ag reement is that a growing numbe r of products that fulfil EU 
requirements and bear the CE label can be marketed directly in Switzerland, and vice-versa.   
Other agreements 
82. In addition, Switzerland participates in a numbe r of mutual recognition agreements in which 
foreign conformity assessments of Swiss regulations are accepted on a bilateral product-specific basis.  
An MRA between Switzerland and Canada has b een in force since 1 May 1999. Also, an MRA 
between Switzerland and the EEA EFTA states entered in to force on 1 June 2002 (Annex I of the 
EFTA Convention) extending the EU-Swiss MRA to the EEA EFTA countries. The authorities have 
indicated that FTAs currently in force do not  go beyond the WTO TBT Agreement in terms of 
disciplines in the area of standards or technical regulations. 
83. Liechtenstein is a contracting party to MRAs  between the EEA EFTA countries and Australia 
(in force since July 2000), Canada (January 20 01), the Czech Republic (November 2003), Hungary 
(December 2003), Latvia (Decem ber 2003), Lithuania (March 2003), New Zealand (March 2000), 
Slovenia (February 2004), and the one with Switzerland. 
                                                      
 70 WTO document G/TBT/W/162, 19 June 2001. 
 71 WTO document G/TBT/10.7/N/44, 29 January 2003. WT/TPR/S/141 Trade Policy Review 
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(d) Sanitary and phytosanitary measures 
Regulatory framework 
84. In addition to the laws and regul ations described in section (a) above, several laws constitute 
the key legal bases for establishing SPS measures in Switzerland.72 While food is regulated by the 
Federal Law on Food, live animals and products of anim al origin are subject to additional veterinary 
regulations (Federal Law on Epizootics). For pl ant and plant products, the Ordinance on Plant 
Protection (OPV), in force since 2001, provides for, inter alia , harmonized plant import regulations 
with the EU.  In May 2002, a major revision of fo od legislation entered into force, adapting Swiss 
legislation to the EU legislation,  and reflecting recent scientific and technological developments in, 
for example, wines, alcopops, and measures against Bovine Spongiform Encephalopathy (BSE).73  
85. Three regimes apply to imports into Switzer land and Liechtenstein of all plants, plant 
products, substrates and other related items to Switzerland and Liechtenstein:  prohibitions, 
authorization through licensing, and authorization s ubject to the delivery of a phytosanitary certificate 
issued by the exporting country.  For items subject to import licensing or phytosanitary certificates, applications must be submitted to the Federal Phyt osanitary Service (Federal  Office for Agriculture) 
in advance of importation.  Imports  of forest reproductive material, esp ecially certain varieties of trees 
deemed important for Swiss or Liechtenstein forestry  (eleven varieties of coni fers and 31 varieties of 
leaf-bearing trees), and of forest plants, are subject to authorization by the Federal Directorate of Forestry.    
86. Differences in implementation of the regimes exist on the grounds of the origin of imports:  
provisions for imports from the European Union ar e different from those applied to goods from 
non-members.  The authorities note that this reflec ts the annex on plant health of the bilateral 
agreement on agriculture between Switzerland and the EU, which aims at facilitating trade (between 
the Parties) in plants, plant products, and other object s subject to plant-health measures, originating in 
their respective territories or imported from certain third countries. The parties note that they have 
similar legislation concerning protective measures against the introduction a nd propagation of harmful 
organisms by plants, plant products or other objects having equivalent results in terms of protection 
against the introduction and propagatio n of organisms harmful to plants  or plant products. The same is 
also true of measures taken in respect of products introduced from certain third countries.  As of 1 
April 2004, mutual access to the EU and Swiss mark ets for all plant products has required the same 
phytosanitary document, a "plant passport". 
                                                     
 
72 These are: the Federal Law on Agriculture ( Loi fédérale sur l'agriculture , RS 910.1), and the 
Ordinance on plant protection ( Ordonnance sur la protection des végétaux , RS 916.20);  the Ordinance on the 
production and marketing of feed ( Ordonnance du 26 mai 1999 sur la production et la mise en circulation des 
aliments pour animaux ( RS 916.307);  the Law on epizootics ( Ordonnance du 27 juin 1995 sur les épizooties, 
RS 916.401);  the Ordinance on the import, transit and export of animals and animal products ( Ordonnance du 
20 avril 1988 concernant l'importation, le transit et l'exportation d'animaux et de produits animaux, 
RS 916.443.11); the Federal Law on food and objects of daily use ( Loi fédérale sur les denrées alimentaires et 
les objets usuels, RS 817.0); the Ordinance on food ( Ordonnance sur les denrées alimentaires, RS 817.02) and 
the related Ordinance ( Ordonnance sur l’importation, le transit et l’exportation des denrées alimentaires et des 
objets usuels ; RS 817.41); the Law on the protection of animals ( Loi fédérale sur la protection des animaux, RS 
455));  and the Ordinance on the conservation of species ( Ordonnance sur la protection des variétés, 
RS 232.161). 
73 Changes to the ODAI are available online at:  http://www.admin.ch/ch/f/as/ 
2002/573.pdf. Switzerland and Liechtenstein WT/TPR/S/141 
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87. Imports of host plants of any bacterial canker or  other plant illness, and of fruit susceptible of 
being infected, are banned regardless of their origin.74 The OPV however distinguishes between 
European and non-European species of noxious organisms.75  The Swiss list of "quarantine 
organisms" is identical to that of the EU, and ta kes into account the recommendations of the European 
Plant Protection Organisation (EPPO). Some of  the quarantine organisms may be present in 
Switzerland. In this case measures are being taken in order to prevent the spread.  Residues of 
pesticides on plants and of storage-protective chem icals on imported fruit and vegetables, and the use 
of additives in foodstuffs are strictly regulated.  Si nce 2000, prohibitions  have been relaxed for certain 
species, or limited to certain areas;  the prohibiti on regime was reinforced for other species.   
88. Imports, transit, and exports of animals and an imal products require a permit issued by the 
Federal Veterinary Office.  Perm it application should be submitted (together with the import licence, 
and the CITES documents, as appropriate) at least one  week in advance of importation. According to 
the authorities, import bans are imposed only in exceptional circumstances and on a case-by-case basis.  In January 2004, an import ban was introduced to combat avian flu.  It affects all birds from a 
number of Asian countries.
76 Measures with respect to BSE are s till in force, affecting the import of 
ruminants and their products originating in the United Kingdom. 
WTO participation 
89. The Swiss enquiry point for SPS issues is the Swiss Association for Standardization (SNV).  
The national notification authority is seco.77  Switzerland is a member of the World Organization for 
Animal Health (OIE), the International Plant Protection Convention, and CODEX Alimentarius. 
Switzerland is also member of the European Plant Protection Organisation (EPPO). 
90. The authorities have stated that Switzerland sy stematically notifies to the WTO all proposed 
changes in domestic sanitary and phytosanitary measures that may have an impact on trade.  It made 
three SPS notifications in 2000, five in 2001, f our in 2002, one in 2003, and five in 2004.78  T h e  
notifications mostly concern import requirements for plant and animal products.  Several countries 
have notified import prohibitions on bovines and their meat products from Switzerland as a response 
to risks posed by BSE.79  An amendment to the phytosanitary legislation on solid wood packaging is 
under review (September 2004).80 
91. Since 1995, under the WTO Agreement on SPS measu res, two specific trade concerns have 
been raised about measures mainta ined by Switzerland;  they cover labelling requirements on meat 
and egg imports, and on wheat grain for industr ial and planting purposes.  In the latter case, 
Argentina, in 1998, complained that it was free from tilletia indica  (Karnal bunt), and queried the risk 
analysis and other scientific documents  that substantiated the requirement.81  The Swiss authorities 
                                                      
74 The Ordinance on the campaign against San José s cale, bacterial canker and virosis of fruit trees 
constituting a general danger, was abrogated in 2001. 
75 RS 916.20. 
76 Ordonnance de l’Office vétérinaire fédéral (1/2004) instituant des mesures temporaires à la 
frontière pour lutter contre la peste aviaire classique, 30 janvier 2004, RS 916.443.11.  These measures have 
been notified to the WTO in document G/SPS/N/CHE/36/Rev.1, 18 February 2004.   
 77 WTO documents G/SPS/ENQ/16, 5 December 2003, and G/SPS/NNA/6, 5 December 2003. 
 77 WTO document G/SPS/GEN/422, 14 August 2003. 
78 WTO documents G/SPS/N/CHE/33-37, 2 February to 29 July 2004. 
79 See WTO notifications in the G/SPS/N series. 
80 WTO document G/SPS/N/CHE/35, 5 February 2004. 
81WTO document G/SPS/N/CHE/5, 13 June 1997.  WT/TPR/S/141 Trade Policy Review 
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indicated that import requirements on meat and eggs  were subsequently modi fied, and the measures 
on wheat grain were lifted. No complaints have been made since 2000. 
Genetically modified organisms (modern biotechnology products) 
92. The Federal Law relating to Non-human Gene Technology (LGG) and regulating the use of 
genetically modified organisms (GMOs) in food production82, entered into force on 1 January 2004.  
The Law was notified to the TBT Committee, and implementing provisions with respect to food 
derived from genetically modified organisms we re notified to both the TBT and SPS Committees.83  
None of the crops grown commercially in Switzerla nd or Liechtenstein is genetically engineered.  As 
at September 2004, no authorization for the cultiva tion of a GMO variety had been requested.  GMOs 
for use in food must be authorized;  the Government  is responsible for the authorization requirements 
and procedures (authorization has been manda tory under the Food Law since 1995). Any person 
handling GMOs for food use must take steps to prevent co-mingling of GMOs with non-GMOs; labeling of GMO-derived foods must assu re adequate consumer information.  
93. The labelling requirements for genetically modifi ed organisms in food are laid down in the 
Ordinance on Foodstuffs, in force since 1 May 2002.
84 GMOs must be indicated on labels unless they 
make up 1% or less of any ingredient in a foods tuff for human consumption. The current provisions 
are to be amended according to the LGG. The amendment is expected to enter into force on 
1 February 2005. In the case of feedstuffs, specific labelling requirements apply85: 2% or more of 
compound foodstuffs for animal consumption; and 3% or  more of the total weight of inputs used for 
the production of feed. The authorities indicate that an updated ordinance on feedstuffs concerning 
GMO is currently under consultation, and that new ru les should be applicable from 1 February 2005.  
Three GM maize and one GM soybean variety have  been authorized for use in food and feed.  
However, no GMOs are used in food and feed at present.  Switzerland does not require official approval of materials obtained by chemical modifi cation of a chemically defined substance derived 
from a GMO, e.g. modified starch products.
86   
(e) Environmental regulations related to trade 
94. Swiss measures for the protection of the environment are laid down in three laws: the CO 2 
Law, the Energy Law and the Law, on the Protection of the Environment.87  Measures under the first 
two acts are described in Chapter IV(3), as are Li echtenstein's Clean Air Act, as amended in 2004, 
and the Energy Conservation Act of 1996.88  As regards the implementation of those provisions, 
Liechtenstein is often bound by the terms of its cu stoms treaty with Switzerland.  International 
cooperation is a key element of Liechtenstein’s e nvironmental policy as it creates synergies important 
for the country given its small size and limited capab ilities. Liechtenstein is currently a State Party to 
                                                      
82 Loi fédérale du 21 mars 2003 sur l’application du génie génétique au domaine non humain, 
RS 814.91.  An unofficial English translation is available at: http://www.umwelt-
schweiz.ch/imperia/md/content/stobobio/biotech/17.pdf.   
83 WTO documents G/TBT/Notif.00/49 and Add.1, 1 February 2000, 20 October 2003; 
G/TBT/N/CHE/40, 30 July 2004; and G/SPS/N/CHE/37, 29 July 2004. 
84 Ordonnance sur les denrées alimentaires, RS 817.02, Article 22 Para. 1, Let.k and Article 22b. 
85 RS 916.307. 
86 WTO document G/TBT/W/179 , 26 July 2002. 
87 Loi fédérale du 8 octobre 1999 sur la réduction des émissions de CO 2, RS 641.71;  Loi du 26 juin 
1998 sur l’énergie , RS 730.0;  Loi fédérale sur la protection de l'environnement, RS 814.01 .  
88 Important Liechtenstein laws relating to the environment include the Clean Air Act, as amended in 
2004, and the Energy Conservation Act of 1996. Switzerland and Liechtenstein WT/TPR/S/141 
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28 conventions and protocols on climate, the Alps, biological diversity, air pollution control, and 
control of chemical and water pollution.   
95. The enforcement of environmental regulations in  Switzerland is mainly the task of the Swiss 
Agency for the Environment, Forests and Landscape (SAEFL).89 At the international level, SAEFL 
negotiates and implements envir onmental agreements, taking due account of international trade 
obligations.  It cooperates with foreign governme nts to ensure compliance with laws governing 
importation and exportation of materials that may po se a risk to human health and the environment, 
including hazardous waste, toxic chemicals, bioc ides, and ozone-depleting substances. Switzerland 
has ratified the Basel Convention on the Control of Transboundary Movements of Hazardous Waste 
and their Disposal as well as the Cartagena Prot ocol on Biosafety to the Convention on Biological 
Diversity (ratified on 26 March 2003).     
96. Over the past four years, Switzerland has pa rticipated actively in the work of the WTO 
Committee on Trade and Environment (CTE) (special and ordinary sessions), submitting several papers on various subjects.
90  One of Switzerland's priorities has been the clarification of the 
relationship between WTO provisions and multilatera l  environmental agreements (MEAs) with a 
view to improving coherence between the two system s in case of a dispute.  Other priorities for 
Switzerland are requirements relating to environmen tal products, including standards and technical 
regulations, and recycling, as well as the issue of eco-labelling.  
97. Switzerland and Liechtenstein apply a number of  trade measures to enforce environmental 
provisions. For example, import prohibitions apply to ozone-depleting substances91, as well as 
carbon-zinc batteries containing more than 0.01% mercury or more than 0.015% cadmium (by 
weight), and alkali-manganese batteries/accumulators containing more than 0.025% mercury.  Certain 
taxes are collected on volatile organic compounds , "extra-light" heating oils and fuels for 
environmental protection purposes (section (ii)(e)) above.    
(viii) Government procurement 
98. In Switzerland, total public spending at all levels of government on goods, services, and 
construction exceeded Sw F 30 billion in 2000, am ounting to approximately 25% of total public 
spending or 8% of GDP.92  Total expenditure is shared between the Confederation (19%), cantons 
(38%), and communes (43%).  Public procur ement by the Liechtenstein Government, its 
communities, and companies with ex clusive or special rights in 2000, 2001, and 2002 was estimated 
at respectively € 37 million, € 27 million and € 16 million.   
                                                      
89 See also SAEFL online information.  Available at:  http://www.umwelt-
schweiz.ch/buwal/eng/index.html. 
90 See WTO documents WT/CTE/W/139, 8 June 2000, WT/CTE/W/168, 19 October 2000, 
WT/CTE/W/192, 19 June 2001; and WT/CTE/W/219, 14 October 2002.  See also WTO documents 
TN/TE/W/4, 6 June 2002, TN/TE/W/16, 6 November 2002, TN/TE/W/21, 10 February 2003, TN/TE/W/30, 
30 April 2003; and TN/TE/W/32, 13 May 2003, for contributions by Switzerland to the work of the CTE in 
Special Sessions.  
91 CFCs;  HCFCs;  halons;  HBFC;  1,1,1,-trichloroethane;  tetrachlorocarbon;  and bromomethane.  
Imports of HCFCs in refrigerators have been banned si nce 2001, and of refills of existing halon installations 
since the end of 2002;  the use of methyl bromide is  restricted to specific indoor fumigation (under licence).  
 92 Commission des achats de la Confédération,  "Présentation et analyse des réponses au questionnaire 
relatif aux forces et faiblesses du droit des marchés publics", Projet de révision du droit des marchés publics , 
15 March 2004.  Available at:  http://www.beschaffung.admin.ch/fr/beschaffungswesen_bund/themen_trends/ 2004_05_08_gesamtauswertung_f.pdf. WT/TPR/S/141 Trade Policy Review 
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99. In Liechtenstein, in addition to the WTO Ag reement on Government Pr ocurement (GPA), the 
disciplines and threshold values for the participation by foreign suppliers are set by the relevant EEA 
rules. Given Switzerland's non-participation in th e EEA, the GPA constituted the principal framework 
governing cross-border public procurement.  Nota ble exclusions from Switzerland's commitments 
under the GPA are the federal railways, the Swiss Post  and the public armament enterprises.93  
Switzerland made reservations on the applicati on of the GPA to other signatories who had not 
extended comparable and effective acces s in certain activities to Swiss firms.94 
100. The agreement on government procurement be tween Switzerland and the EU entered into 
force in June 2002 (Chapter II(4)(ii)(b)).95     
(a) Regulatory framework 
Switzerland 
101. The main law covering federal markets is the 1994 Federal Law on Government 
Procurement96, and its 1995 Ordinance, as amended.97  The law specifies the procurement regime;  it 
also provides for, inter alia , periodic adjustments of definitions and threshold values to the relevant 
GPA provisions.  The Ordinance specifies the proc urement regime for purchases covered by the law 
as well as for all remaining areas, i.e procurements below the relevant threshold values, or purchases 
by entities excluded from Switzerland's commitments under the GPA.  It provides for, inter alia , non-
discrimination amongst eligible tende rers, effective competition, and the respect of workers' rights 
and working conditions. 
102. At the federal level, 42 purchasing offices have been designated for goods; for services, each 
federal office does its own purchasing. The Procurement Commission of the Confederation 
coordinates public purchases of goods and services,  except construction.  Its sixteen members, 
including the chair, are nominated by the Federal Council.   
103. Four types of tendering procedure are availabl e: open tenders;  selective tenders (with pre-
selection);  invitations to tender (at least three bidders must be invited); and single tendering.  
Procurement above the GPA thresholds generally  follow open or selective tendering procedures.  
Single tendering is confined to cases foreseen in Artic le 13 of the Ordinance, such as the absence of 
any other suitable bidder.  Any of the four tende ring procedures may be followed for procurement 
below the GPA thresholds, but single tendering has ge nerally been preferred.  Contracts must be 
awarded to the supplier that has presented the most economically advantageous offer, closest to the 
                                                      
93 The federal railways reported purchases of goods alone of approximately Sw F 1.1 billion in 2002, 
about twice the total expenditure of the Swiss Post.  La Vie économique , October 2003, p. 49. 
94 Currently, these reservations apply to,  inter alia :  Canada (regional bodies, entities in water, 
electricity, local transport, airports  and ports subsectors, as well as certain services subsectors);  the 
United States (communal bodies and water, local transport, airports and ports entities, as well as certain services 
subsectors and challenge procedures);  Japan (communal bo dies, electricity and local transport entities, as well 
as challenge procedures);  the Republic of Korea (communal bodies, airports and local transport, challenge 
procedures);  Israel (communal bodies, local transport, certain services subsectors an d challenge procedures);  
and Singapore (communal bodies, water and electricity  entities). For details, see WTO online information.  
Available at:  http://www.wto.org/eng lish/tratop_e/gproc_e/chegen.doc. 
95The text of this agreement is available onlin e at:http://www.europa.admin.ch/ba/off/abkommen/ 
f/beschaffungswesen.pdf.  It was notified to the WTO in WTO document  WT/REG94/R/B/3, 
13 September 2004 .    
96 Loi fédérale sur les marches publics, RS 172.056.1. 
97 Ordonnance sur les marchés publics , RS 172.056.11. Switzerland and Liechtenstein WT/TPR/S/141 
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criteria specified in the tender documentation.  Neither the Law nor the Ordinance provide for 
preferential treatment to Swiss suppliers.   
104. The 1994 inter-cantonal Concordat by the cantons  translated the GPA into cantonal laws for 
public purchases by cantons and communes and of certain specified companies.98  The Concordat 
applies to contracts exceeding Sw F 9.6 million for construction projects99;  Sw F 383,000 for goods 
and services;  and Sw 766,000 for goods and servi ces purchased by public water, energy, and 
transport companies.  The 1995 Internal Market Law (LMI) also specifically provides for non-discrimination in public procurement at cantonal an d local levels, by allowing suppliers from any 
cantons to compete for contracts throughout Switzerland.
100   
105. An independent body, the Commission des marchés publics Confédération/Cantons (CMCC) 
is responsible for the enforcement of Switzerla nd international commitments regarding public 
procurement contracts.  An appeals commission ( Commission de recours en matière de marchés 
publics,  CRM) is in place to deal with complaints  relating to federal government procurement 
contracts;  these may not be appealed to the Fede ral Tribunal.  At cantonal level, administrative 
tribunals are competent to deal with complaints  arising from tendering procedures, which can be 
appealed to the Federal Tribunal.  A number of structural problems regarding these appeals 
procedures were identified by a parliamentary st udy published in 2002, commissioned as part of the 
Government's recent evaluation of publi c procurement policies and practices.101  Problems identified 
included conflicting decisions between  the Federal Tribunal and the CRM, the high cost of procedures 
relative to their expected benefits, and worries e xpressed by suppliers about potential retaliation from 
purchasing entities when they appeal.  Swiss law do es not provide for appeals by surveillance bodies 
such as the CMCC (except in case of violation of  international obligations) or the Competition 
Commission.  
Liechtenstein 
106. In Liechtenstein, in addition to the GPA, th e threshold values for external competition in 
public procurement contracts are set by the re levant EEA rules. A 1999 law and regulation 
incorporate the international obligations of Liechtens tein into national legisla tion.  In general, open 
tendering is required for constructi on works and related purchases.  Public procurement in other areas 
is through selective tendering.  There are no de jure  preferences for local suppliers.  Complaints 
related to public purchases may be lodged with the Go vernment, the Administrative Court, or with the 
EFTA Surveillance Authority if EEA provisions are c oncerned.  A joint declaration by Liechtenstein 
and certain neighbouring Swiss cantons enables supp liers from the latter to tender (on a reciprocal 
basis) for purchases below the threshold values. Since its last TPR, Liechtenstein has adapted its 
ordinance on public procurement with  regard to the time limits for individual areas of the procedure 
(in accordance with EC directive 97/52/EC and 98/4/EC),  and to standard forms in the publication of 
public contract notices (in accordance with EC directive 2001/78/EC).  
                                                      
 98 RS 172.056.4. 
99 Construction contracts awarded by communes account for nearly 50% of public sector construction 
in Switzerland, but are not subject to the GPA.  Th ey have been open to EU suppliers since 2002. 
100 Loi fédérale sur le marché intérieur, RS 943.02. 
101 See Organe parlementaire de contrôle de l'administration , "L’ouverture des marchés publics en 
Suisse sous l’angle juridique et économique", Rapport final à l’attention de la Commission de gestion du Conseil national, Berne, 14 mars 2002 .  Available at www.parlament.ch.  WT/TPR/S/141 Trade Policy Review 
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(b) Recent developments 
107. A 2001 Amendment to the EFTA Convention was par tly designed to incorporate the results 
of the bilateral agreements with the EU, whilst allowing for a complete revision of the Convention.102  
Accordingly, the coverage of the Convention w as expanded, thereby aligning its provisions on 
government procurement on Switzerla nd's bilateral agreement on pub lic procurement with the EU, 
which goes beyond the GPA (Chapter II(4)(ii)).   The implementation of the bilateral agreement 
resulted in changes to both the Ordinance and the inter-cantonal Concordat, including their scope in 
terms of purchasing entities, threshold values, and th e establishment of a surveillance authority (the 
CMCC described above).  
108. Chapter V of EFTA's July 2001 Free Trade Agreem ent with Mexico (which is not a member 
of the GPA), covers government procurement.103  Mexico committed to provide EFTA suppliers the 
same access conditions as suppliers  from the European Union, United States or Canada, and the 
EFTA states have granted Mexico access simila r to their GPA commitments, excluding the sub-
central level.  Under the chapter on governme nt procurement of the EFTA-Chile Free Trade 
Agreement, signed on 26 June 2004, the Parties grant non-discriminatory access to each other's 
procurement markets for goods, services, and public wo rks at the central government level, the sub-
central level and for the utilities entities listed in the respective Annexes.104 
109. Since 2002, as a result of an initiative by the cantons of Geneva a nd Vaud, procurement 
contracts have gradually become advertised online throughout the country.105  Eleven cantons and 
several big cities advertise online. The authorities indicate that the other twelve cantons and the 
Confederation will advertise electronically in the near future. 
110. The parliamentary study mentioned above concl uded that, while the legislation was functional 
for frequent and well defined purchases, it was difficu lt and in some cases impossible to apply it to 
atypical markets.  Current legislation, according to  the study, does not take into account the increasing 
tendency of public entities to delegate responsibilities to semi-public bodies or to the private sector.  
The study also noted that, because of technological  development, actual procurement markets were 
increasingly complex, and adjudicators were faced  with novel situations not envisaged in the 
legislation.  The study highlighted the need for a clarification, simplification, and harmonization of 
current legislation. The multiplicity of federal and/or cantonal bodies was also found to require 
additional coordination and leadership.  Partly as a result, federal public procurement legislation was 
under revision in May 2004.106   
                                                      
102 Accord amendant la Convetion instituant l'Association européenne de libre-échange.  Available at:  
http://www.admin.ch/ch/f/as/2003/2685.pdf. 
103 The agreement is available online at: http ://secretariat.efta.int/W eb/ExternalRelations/ 
PartnerCountries/Mexico. 
104 The agreement is available online at:  http ://secretariat.efta.int/W eb/ExternalRelations 
/PartnerCountries/Chile. 
105 The relevant website is http://www.simap.ch. 
 106 Commission des achats de la Confédération  (2004). Switzerland and Liechtenstein WT/TPR/S/141 
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(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Export procedures, taxes, and controls   
111. Exporters must present all goods to customs offices.  An export declaration is required 
(regardless of the type of product and its destination) for statistical purposes.107  Permits are required 
to export animals and animal products, as well as na rcotic drugs and psychotropic substances, and 
certain articles containing gold (see section (2)(v) above).   
112. Switzerland and Liechtenstein maintain export controls (by means of licences) on certain 
products for safety, security, and environmental reas ons, and to ensure compliance with international 
obligations under treaties a nd conventions to which they are signa tories (e.g. the Basel Convention on 
international transport of hazardous waste, CITES,  the Convention on Chemical Weapons, the Treaty 
on Nuclear Non-Proliferation).  Switzerland and Liechte nstein have no export taxes, charges or levies. 
113. 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.108 While the underlying laws and ordinances have undergone a number of modifications 
since 2000, their basic objectives have remained the same.  Exporters are required to obtain an export 
permit for these items from the seco , which publishes annual statistics on exports of war material.109  
Among the recent modifications, a new law entered into force in 2002 to deal with overlapping 
regulations, to relax licensing requirements for certain dual-use items, and to centralize all 
responsibilities for export licensing in the seco.110 
114. Switzerland and Liechtenstein apply certain trad e prohibitions or restrictions (both imports 
and exports) under sanctions decided by the UN S ecurity Council.  Such trade sanctions are 
implemented by special Ordinances, which are based on the Law on the Implementation of International Sanctions  (RS 946.231) of 2003.
111  For transparency purposes,  Liechtenstein also enacts 
its own ordinances to implement these UN decision s.  These trade sanctions generally cover war 
material and military equipment, and are curren tly in place against Iraq (also cultural products), 
Liberia (also timber, wood produc ts, and rough diamonds under the Ki mberley Process (section (2)(v) 
above), Sierra Leone, and against persons and entities related to Ousa ma Bin Laden, Al Quaida, and 
the Taliban.  
115. Switzerland and Liechtenstein also implement, autonomously and on a case-by-case basis, 
economic sanctions taken by the European Union. Currently, these include a prohibition to export war 
material and other military equipment to Myanma r and Zimbabwe. Trade restrictions against the 
former Federal Republic of Y ugoslavia were lifted in 2001.  
                                                      
107 For details, see Administration fédérale des douanes online information.  Available at:  
http://www.afd.admin.ch/f/firmen/export/export.php. 
 108 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 related ordinances (RS 94 6.202.1, RS 946. 202.21);  the Law 
on War Material (RS 514.51), and its Ordinance (RS 514.511). 
 109 The seco annual statistical data is available online at:  http://www.seco.admin.ch/news/00257/index 
.html?lang=fr.   
110Loi fédérale relative à la coordination de la législa tion sur les armes, sur le matériel de guerre, sur 
les explosifs et sur le contrôle des biens .  Available at:  http://www.admin.ch/ch/f/as/2002/248.pdf. 
111 A list of all sanctions ordinances currently in force is available online at: http://www.seco-
admin.ch/themen/aussenwir tschaft/sanktionen/massnahmen/index.html?lang=fr. WT/TPR/S/141 Trade Policy Review 
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(ii) Export subsidies, and duty and tax concessions 
116. Switzerland grants export subsidies on several processed agricultural products 
(Chapter IV(2)(ii)(g)).  These generally consist of di rect contributions to price reduction or to input 
costs.  Under Article 17 of the Federal Customs Law112, and its Ordinance (Article 39), tariff 
concessions may be granted on imports of products th at are re-exported after processing.  Exports are 
VAT-free.  
117. According to the Liechtenstein authorities,  a few Liechtenstein food processing companies 
benefit from the Swiss export subsidy scheme;  a large number of the subsidized goods are neither 
produced nor exported by Liechtenstein. 
(iii) Export promotion  
118. The Osec Business Network Switzerland113, mandated by the seco, provides companies 
located in Switzerlan with information, advi ce and contacts regarding foreign markets, and 
opportunities; and it advertises Swiss industries and services abroad.114  The international activities of 
Osec include participation in, and, organization of  fairs, sales missions abroad, market analyses, 
advice and information on trade, and inviting fore ign customers to Switzerland.  Osec is an 
association of some 1,400 members, of which 90% are representatives of small and medium-sized 
enterprises.  The annual contribution of the Confed eration amounts to approximately Sw F 17 million;  
it finances about two thirds of Osec's activities.  Export promotion activities abroad are carried out by 
either the Swiss business hubs (in 14 different countries as of September 2004) or by the Swiss 
representations. Osec also collaborates with other pr ivate associations or organizations so as to 
coordinate the Swiss export promotion network.   
119. In 2001, a legislative amendment was aimed at enhacing Osec's capacity to develop the export 
capacity of small and medium-sized companies.  The activities of Osec were again the subject of a 
parliamentary debate in 2003. Points of argument were the risk of a violation of the principle of subsidiarity, through competition between  Osec and private sector suppliers.
115  Another related point 
was the risk of cross-subsidization between Osec’s government-subsidized services (required by law), 
and its own private sector services (allowed by law).  The latter consist mainly of educational/training 
services (various seminars and courses on export k now-how). As a result, Osec no longer offers any 
educational services. Its training division was out-sourced and became  legally independent. 
120. Liechtenstein does not have its own export prom otion scheme.  However, the Government of 
Liechtenstein and individual companies are members of Osec.  This allows Liechtenstein companies 
to use the services of Osec in the same way as Swiss enterprises.   
(iv) Export credits, insurance, and guarantees 
121. Tied aid is still provided by the seco, but is offici ally restricted to infrastructural projects in, 
for example, water supply, energy, or environmen tal protection.  All goods and services purchased in 
this context must have at least 51% Swiss origin.  Two types of funding exist for these projects:  
                                                      
112 Loi sur les douanes , RS 631.0. 
113 OSEC is the acronym for for Office suisse d'expansion commerciale.   Online information.  
Available at:  http://www.osec.ch.  
114 The underlying legislation is the Loi fédérale sur la promotion des exportations, RS 946.14. 
 115 Federal Council (2004). Rapport sur la politique économique extérieure 2003 et Message 
concernant des accords économiques internationaux du 14 janvier 2004 , available at  
http://www.admin.ch/ch/f/ff/2004/257.pdf.   Switzerland and Liechtenstein WT/TPR/S/141 
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outright grants and, to a lesser extent, mixed cr edits, which combine a grant with private sector 
credits. Funding is available for exports to c ountries with per capita GNI below the eligibility 
threshold for World Bank 17-year loans, and that  comply with the OECD guidelines for tied-aid 
credits (Helsinki package).  Annual public fu nds disbursed by Switzerland under the scheme 
amounted to some Sw F 17.1 million in 2003.  According to the authorities, the mixed credit scheme 
is currently used exclusively for developmen t purposes, notably social infrastructure and 
environmental protection, and is limited to proj ects that are not economically viable without 
concessionary financing.116  The same rule applies, in principle, to the grants.   Liechtenstein does not 
participate in the mixed credit scheme, and h as no export insurance and guarantee scheme.   
122. Established under the Federal Law on Guarante es against Export Risks, the Swiss Export 
Risk Guarantee Scheme (ERG) is  aimed at creating and safeguarding employment opportunities in 
Switzerland, while promoting foreign trade through, inter alia,  the diversification of export 
destinations.117  The ERG offers insurance against political  and transfer risks, commercial risks as 
well as pre-delivery risks. Deliveries need to be of  Swiss origin or have to include an appropriate 
element of Swiss added value. Generally, at least 50% need to be of Swiss origin but exceptions are 
possible depending on risk, value or lack of compe titive Swiss components.  The maximum coverage  
amounts to 95% of the sale value plus interest. 
123. Commercial risk can be covered only for public or  state-owned buyers and for public utilities.  
Payment risks arising from exports to private buyer s can be covered if  and ERG-approved bank, 
provides a guarantee. In September 2004, new legi slation was adopted by the Federal Council to 
extend, inter alia , ERG-coverage to private buyers.118   
124. Reinsurance agreements with Germany119, France, Italy, Austria, Spain, Sweden, and the 
Czech Republic allow reinsurance of the Swiss c ontent of exports from these countries to third 
countries.  At the same time, the ERG can seek rein surance for foreign content originating in those 
countries from their respective cred it agency.  Exports exceeding Sw F 10 million are published on 
the ERG's website with the exporter's consent.   
125. In 2003, new guarantees granted amounted to Sw F 2.2 billion.  The total commitment of 
export guarantees was Sw F 9 billion, up from Sw F 6. 8 in 1999.  Major markets continue to be 
Turkey, Iran, China, Bahrain, and Mexico.  Clai ms payments in 2003 amounted to Sw F 142 million 
(Indonesia Sw F 122 million, Pakistan Sw F 16 million,  part of Paris Club rescheduling agreements  
and Zimbabwe Sw F 4 million).  In 2004, the ERG repaid in full the loan granted by the 
Confederation;  in 1999 the outstanding loan amounted to Sw F 650 million.   
126. The use of the ERG has continued to be cont roversial within the Swiss Federal Assembly 
over the period under review.  In particular, the fina ncing of projects such as large dams has been 
                                                      
 116 Federal Council (2004). 
117 Garantie fédérale contre les risques à l'exportation , 26 September 1958 and its Ordinance as 
revised on 1 July 1998.  ERG online information.  Available at:  http://www.swi ss-erg.com/e/index.shtml. 
118 Loi sur l'assurance suisse contre les risques à l'exportation (LARE).   See seco (2004), De la 
garantie contre les risques à l'exportation à l'assurance contre les risques à l'exportation.  Available at: 
http://www.seco.admin.ch/news/00404 /index.html?lang=fr&noarchiv=yes. 
119 RS 0.946.111.36. WT/TPR/S/141 Trade Policy Review 
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questioned in relation to Switzerland's developmen t, debt reduction, sustainable development, and 
government procurement principles.120   
(v) Other provisions  
127. There are neither export-processing zones nor fr ee ports in Liechtenstein.  Switzerland has 
close to 30 free ports located at its main frontier pos ts and in most of its major trade and industrial 
centres.  Free ports are operated by private enterp rises;  under Article 42 of the Federal Customs Law 
(LD)121, they are considered as extraterritorial areas where goods may be stored indefinitely without 
customs inspection, unpacked, rep acked, labelled, preserved, analysed, sorted, divided, mixed, and 
sampled.  Processing activities resulting in changes of tariff classification are subject to customs 
authorization.  Goods may also be stored in fe deral bonded warehouses (under customs control) for up 
to five years, where they may only undergo pro cessing that is essential for their preservation.   
128. In accordance with the new Article 46f of the LD , goods that have not yet been cleared for 
inland consumption can now be stored at the prem ises of the importers, exporters, commercial houses 
or forwarding companies.  These goods are to be i nventoried and stored separately from inland goods. 
A company with such an "open custom warehouse" must deliver a guarantee and must be authorized 
to operate this system by the customs authorities.  Currently, there are more than 180 enterprises using 
this customs procedure. 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Government subsidies and other assistance 
(a) General features 
129. In Switzerland, government assistance to businesses is granted at both federal and sub-federal 
levels. The main instruments of support consist of fi nancial transfers and tax exemptions.   Financial 
transfers are of two kinds:  ongoing structural assistance (annual transfers), mainly to agriculture (Chapter IV(2)), health and social assistance, and ra il transport;  and ad hoc support in times of crises, 
e.g. in 2001 and 2002 to the national airline (Chapter IV(8)) and to two cantonal banks.    
130. The Liechtenstein authorities have indicated that economic subsidies exist only for:  
agriculture, for which direct payments in 2003 amounted to Sw F 10.6 million (Chapter IV(2));  tourism, 
financial support of some Sw F 600,000 per year  for international tour ism marketing activities 
(Chapter IV(9));  and public transport, financial assi stance of Sw F 14.5 million per year.  However, as 
Liechtenstein is a member of the EEA, its companies may participate in EU programmes, such as the Sixth Framework Programme for re search and development of the European Community and the 
Multiannual Programme for Enterpri se and Entrepreneurship, and, in  particular, in programmes for 
small and medium-sized enterprises, to wh ich Liechtenstein contributes funding.   
(b) Federal transfers 
131. Switzerland's Subsidies Act stipulates the main criteria to be applied and procedures to follow 
when granting subsidies at federal level.  The Mi nistry of Finance maintains a database of federal 
                                                     
 
120 See for example Swiss Federal Assembly (2002), , Garantie contre les risques à l'exportation pour 
le projet contesté de barrage de Bujagali en Ouganda, Bulletin officiel de l'Assemblée fédérale, Interpellation 
02.3082 Gysin Remo . Available at:  http://www.parlament.ch/Poly/Download_amtl_Bulletin/02_06 
/NR_Beilagen_02_06.pdf. 
121 Loi sur les douanes,  RS 631.0. Switzerland and Liechtenstein WT/TPR/S/141 
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subsidy programmes.122  According to national accounts data, in 2002, subsidies to producers alone 
amounted to Sw F 4.5 billion at federal level,  and Sw F 10 billion at cantonal level, and 
Sw F 3.5 billion spent by the communes.  The total,  at close to Sw F 18 billion, represented 4.2 of 
GDP.123      
132. Switzerland's latest notification to the WT O of its subsidy programmes for businesses, under 
Article XVI:1 of the GATT 1994 and Article 25 of  the Agreement on Subsidies and Countervailing 
Measures, distinguishes four types of federal programme124: assistance for zones that are "under 
economic renewal"; assistance for mountain areas; assi stance for forestry activities;  and assistance to 
agriculture and food production.   
133. The first programme aims to create and main tain private manufacturing jobs in areas under 
economic renewal, i.e. where:  the average une mployment rate is relatively high or where the 
economic prospects are particularly unfavourable.125  Financial assistance consists of federal tax 
exemptions, credit guarantees, and interest subsid ies.  In 2003, Sw F 6 million were granted in 
guarantees, Sw F 1.2 million in interest subsidies,  and Sw F 3.2 million to compensate for project 
losses.  The assistance is programmed until 30 June 2006.   
134. Assistance for mountain areas consists of long- and medium-term capital loans to small and 
medium-sized establishments situated in mountain areas.126  The subsidy does not relate to specific 
products or sectors.  The Confederation's total federal commitments on this programme amounted to 
Sw F 49 million in 2003.  Assistance for forestry ac tivities consists of compensation to forest owners 
for services rendered to the public.127 Assistance is allocated in the form of indemnities and financial 
aid for the performance of certain specified tasks. Financial aid is also offered for the building of 
forest roads and other structural improvement.  In 2002, the regular assistance was Sw F 166 million, 
plus Sw F 58 million of additional payments as r econstruction payments following Hurricane Lothar.  
Starting from 2003, the Confederation plans to reduce assistance to forestry by 2006 to two thirds of its 2002 amount. 
135. The lion's share of notified subsidies goes to producers or processors of agri-food 
commodities (Chapter IV(2)).  For example, butter producers received subsidies of Sw F 92.9 million 
in 2002, over a fifth of the value of production (Sw F 430 million). For skimmed milk and skimmed 
milk powder, breeders who use skimmed milk, as we ll as manufacturers of special products such as 
acid casein, caseinates or milk substitutes, receive d contributions amounting to Sw F 39 million in 
2002. Subsidies were also paid out for domestic sal es and exports of some soft and semi-hard cheeses;  
for exports of cream, yoghurt, and other dairy pr oducts (total expenditure of Sw F 31.3 million for 
2002);  for sales and exports of breeding and dair y cattle raised in mountain areas;  for horses; 
                                                     
 
122 Loi fédérale du 5 octobre 1990 sur les aides financières et les indemnités, RS 616.1.  Banque de 
données des subventions fédérales .  Available at: http://www.efv.admin.ch/f/finanzen/subven/h_rubrik.php. 
123 The authorities note that major changes have take n place in the classification of data following the 
updating of Swiss national accounts according to the new system of European National Accounts SEC 95.  A 
major difference regards the classification of public hospitals, which are no longer regarded as public sector. 
Therefore contributions from the cantons and communes to the hospitals are now regarded as subsidies.  
 124 WTO document G/SCM/N/95/CHE, 10 April 2003.  Under procedures adopted by the Committee 
on Subsidies and Countervailing Measures, the review of subsidy notifications is conducted on the basis of written questions and answers.  Se e WTO document G/SCM/W/524 containing these procedures, and WTO 
documents G/SCM/Q2/CHE/12-15, containing Switzerland's exchanges with the United States and the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu. 
125 The underlying legislation is the Ordonnance concernant la détermination des zones économiques 
en redéploiement .  RS 951.931.1. 
126 RS 901.2. 
127 Federal Ordinance on forests, RS 921.01. WT/TPR/S/141 Trade Policy Review 
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domestic wool;  feed grains;  oilseeds;  sugar beet; potatoes; and for fruit.  The largest amount of 
reported export subsidies in 2002 was for processe d agricultural products su ch as pasta,  cereals, 
biscuits, sugar, molasses, and other products ma de using Swiss milk, eggs, or cereals (Sw F 
115 million in 2002).  These measures, and their effects on the Swiss and world agri-food markets are 
described in Chapter IV(2). 
(c) Assistance for research and development 
136. At the time of its last Review, Switzerland was among the most research-intensive OECD 
countries.  In 2000, the Confederation paid a to tal amount of Sw F 2.2 billion for research and 
development (irrespective of the instruments used).128  However, in real terms, Swiss public budgets 
for R&D recorded a downwar d trend between 1997 and 2003.129  The main government agency 
involved in R&D programmes is the Federa l Commission for Technology and Innovation 
(Commission pour la technologie et l'innovation ).130 Under mandate by the Federal Government, the 
Swiss National Science Foundation ( Fonds national suisse de la recherche scientifique (FNRS)) is the 
Switzerland's most important research promotion agency and supports research (mostly basic) that is undertaken especially in universities a nd other academic research institutions.
131 
137. Government assistance of 40% of the total cost  may be provided by the CTI to research 
programmes of industrial interest that are proposed jointly by a private company and a non-profit research unit;  the subsidized research must take  place in the non-profit unit (university or other 
research centres), and the private company interested  in the research must pay 60% or more of the 
project costs.  Funding for th e CTI was increased from Sw F 300 million for the 2000–03 period to 
almost Sw F 450 million for 2004–07.  As a result, innovation projects of at least Sw F 1 billion are 
expected to be generated over this period.
132 
138. Switzerland signed a bilateral agreement on r esearch and development with the EU, which 
allows Swiss researchers access from 2004, to EU-f unded projects on equal terms with those in EU 
member States (on a reciprocal basis) (Chapter II(4)(ii)).    
(d) Sub-federal measures 
139. Swiss cantons may also grant subsidies or other types of assistance to in dividual firms located 
in a canton.  No notification of distinct sub -federal assistance programmes has been made by 
Switzerland to the WTO, although the programme s in favour of areas under economic renewal, 
mentioned in the WTO notification, include overall s ubsidy amounts that can be granted by either the 
Confederation or the cantons.  
140. Certain cantonal banks (see also Chapter IV( 11)) have received substantial sub-federal 
assistance in recent years, usually as cantonal investme nts, to assist in recovery.  For example, the 
Geneva Parliament was authorized in May 2000 to  borrow Sw F 246.2 million to purchase shares in 
the ailing Banque cantonale de Genève (BCG), which had high-risk or non-performing assets of 
                                                      
128 Federal Council (2002) . Message du Conseil fédéral suisse relatif à l'encouragement de la 
formation, de la recherche et de  la technologie pendant les années 2004 à 2007, 29 novembre 2002 (02.089); 
pp. 2214-2215.  
129 European Commission (2003), p. 27. 
130 CTI online information.  Available at:  http://www.bbt.admin.ch/e/index.htm. 
131 FNRS online information.  Available at:  http://www.snf.ch/en/por/por.asp. 
132 See the CTI 2003 Annual Report, available at http://www.bbt.admin.ch/kti/download/e/ 
kti_bericht_2003.pdf. Switzerland and Liechtenstein WT/TPR/S/141 
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approximatedely Sw F 5 billion in 2000.133  The total cost to Geneva taxpayers of this bank's rescue 
was budgeted at Sw F 2.7 billion.134  Similarly, in February 2003, following serious financial 
difficulties, the Canton of Vaud provided the Banque Cantonale Vaudoise  with Sw F 1.25 billion in 
additional share capital. 
141. Under a federal tax-harmonization law (LHID), th e Swiss cantons were required to adapt their 
tax laws in January 2001.135  This harmonization law does not, ho wever, cover the level of tax rates 
and other charges, reflecting the constitutional fina ncial sovereignty of the 26 Swiss cantons. As a 
result, the total corporate tax rate varies from about  60% of the Swiss average rate in certain cantons 
such as Schwyz and Zug, to 128% in Geneva, and 140% in Graubunden.136  A handbook published by 
the State Secretariat for Economic Affairs lists various investment incentives provided by Cantons.137 
142. In many cases, cantonal tax rates vary among corporations, depending on their activity.  
Holding companies that only engage in managing investments in other companies and do not conduct 
any business activity in Switzerland, are exempt fr om cantonal income tax in several cantons.  Tax 
exemptions are also granted by some cantons to  "administrative companies", whose business activity 
is primarily related to business abroad, and an y business activity in Switzerland itself is of a 
secondary nature.  These companies are not allowe d to undertake their own production or distribution 
activities in Switzerland.  The business activity mu st be performed predominantly outside of 
Switzerland, i.e. at least 80% of both sales and purchases must take place outside of Switzerland.  The taxation of their foreign-source income is a function of the importance of the activity exercised in Switzerland (Article 28 LHID).  In contrast, Sw iss operating facilities, i.e. businesses that are 
principally engaged in manufacturing, trading or the provision of services in Switzerland, are subject 
to taxes on profit and capital at their domicile or at the actual place of  economic activity.   
143. In 2003, the tax exemptions granted by a Sw iss canton were also the subject of a written 
parliamentary question to the European Commission.
138  Recent research on corporate tax exemptions 
in Switzerland concluded that a canton will not im prove its relative position within the country by 
"poaching" investment projects from one business lo cation to another, and that none will gain any 
long-lasting competitive advantages.139  The study also found that many tax exemptions were directly 
and privately negotiated with the cantonal tax author ities.  Moreover, corporate tax exemptions were 
in certain cases coupled with personal income tax redu ctions in favour of the companies' management. 
(ii) State-trading enterprises and exclusivity rights   
144. The only entity included in the latest Swiss no tification of state-trading enterprises to the 
WTO (in 2004) was the Federal Alcohol Board ( Régie fédérale des alcools, RFA) under the 
                                                      
133 Etat de Genève, "General Memorandum concerning the Foundation for Valorization of the Cantonal 
Bank of Geneva Assets", April 2001.  
134 Etat de Genève, Rapport annuel de la Commission de contrôle de la Fondation de valorisation des 
actifs de la Banque cantonale de Genève , Session of 21 September 2001, available at:  
http://www.geneve.ch/grandconseil/memorial/data/540411/45/540411_45_partie3.asp. 
135 Loi fédérale sur l’harmonisation des impôts directs des cantons et des communes, RS 642.14. 
136 Data from Administration fédérale des finances, reported in Le Temps , 27 Octobre 2003. 
137 See seco Handbook for Investor s, Section 13.3. Available at: 
http://www.standortschweiz.ch/seco/intern et/en/service/publications/index.html. 
138 European Commission (2002), "Freedom of cantons in Switzerland to turn themselves into a tax 
haven for international companies", Written Question E- 2690/03 by Erik Meijer (MEP) to the European 
Commission.  The issue of privileged taxation of companies that have no domestic productive or trading 
operation has been the subject of debate in the OECD's Forum on harmful tax practices.    
139 Dafflon and Rossi (2003). WT/TPR/S/141 Trade Policy Review 
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responsibility of the Federal Department of Finance.140  The Board is justified by the authorities on 
public health reasons;  it is aime d at reducing the production and cons umption of spirits according to 
Article 105 of the Federal Constitution.  
145. The Swiss Confederation, through alcosuisse, a profit centre of the RFA, has a monopoly over 
imports of ethanol with alcohol content of over 80% by volume.  However, imports by the private 
sector are possible, subject to prior authorization by the RFA.  Domestic production of ethanol and 
spirits (by industrial and professional producers, fa rmers, small producers), is carried out by the 
private sector under a concession.  Industrial distilleries and spirits producers market their products directly, subject to payment of the monopoly duty (section (2)(ii)(c) above). 
146. The mining, importation, and sale of the va rious types of salt in Switzerland are under 
monopoly.
141  The Canton de Vaud is supplied exclusivel y by the Salines de Bex SA (the Canton is 
the most important shareholder) whereas all the othe r Cantons and the Principality of Liechtenstein 
(subject to its EEA commitments) are supplied excl usively by the Salines suisses réunies du Rhin SA, 
Pratteln (Bâle-Campagne). Shareholders of the latte r are all cantons (with the exception of the Canton 
de Vaud) and the Principality of Liechtenstein.  The Cantons transferred their rights in importation 
and sale of salt and mixtures of salt to th e above-mentioned public companies through an 
inter-cantonal Convention.142  
147. The 1959 legislation that provided exclusive rights to the Confederation to import bread flour 
for food security reasons, and to protect the dom estic milling industry, was abolished in 2001.143  With 
the exception of the abolition of the state monopoly on trade in bread flour, the range of exclusive 
rights granted to public, semi-public or privat e suppliers of goods and services has not changed 
significantly (Table III.5).  Certain semi-public co mpanies, such as Swisscom, continue to enjoy 
certain de facto exclusive rights (Chapter IV(5)), and public monopolies remain in several subsectors, 
for example energy (Chapter IV(3)(ii)). 
148. The Liechtenstein authorities have indicated that  existing exclusive or monopoly rights in the 
electricity, gas, or telecommunication subsectors were being gradually reduced (See Chapter IV(3)(ii) 
and IV (5)). State-owned or private enterprises hold exclusive rights or exercise monopoly power only 
over the supply of public passenger transport, rail transport (through an 1870 concession to the 
Austrian Federal Railway), and certain postal services.    Also, at the end of 2003, the private radio 
station "Radio L" was nationalized.   
                                                      
140 WTO document G/STR/N/10/CHE, 5 July 2004. 
141 Paragraph 4 of Article 94 of the Federal Constitution  (Constitution fédérale de la Confédération 
Suisse du 18 avril 1999,  RS 101). 
142 Convention Intercantonale sur la vente du sel en Suisse , RS 691. 
143 WTO document G/STR/N/8/CHE, 25 June 2002.   Switzerland and Liechtenstein WT/TPR/S/141 
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Table III.5 
Exclusivity arrangements affect ing production or trade, 2004 
Goods or services Entity Coverage 
SWITZERLAND AND LIECHTENSTEIN  
Agriculture  
Distilled beverages and spirits Federal Alcohol Bo ard Import rights conferre d on the private sector 
SWITZERLAND  
Manufacturing sector and utilities  
Salt Monopoly jointly administered by the cantons Exclusive production and distribution rights 
Electricity; drinking water Cantona l or local public authorities or 
companies Exclusive production and distribution rights 
Gas Swissgas and public regional suppliers Exclusive production and distribution rights 
Telecommunications network Swisscom Infrastructure monopoly 
Services  
Rail transport Federal railways (CFF) Fe deral licence granted by Parliament, 
exclusive supply rights 
Passenger transport by bus, tramway, cable, boat, etc. Public, cantonal or local companies Exclusive supply rights 
Air transport Swiss International Airline Priv ileges as national flag carrier (exclusive 
route access, etc.) 
Airport management Geneva International Airport, Zurich 
International Airport, and Basel International 
Airport .. 
Air traffic control  Swiss Control M onopoly provider of specified services 
Air traffic management Public authorities or companies  
Ports Ports of Basel-Stadt and Basel-Landsch aft Exclusive installation and management 
rights 
Certain telecommunication services Swisscom Local loop 
Radio and television SSR So le nationwide broadcaster 
Postal services La Poste Suisse Certain  domestic and international mail 
services for letters 
Certain insurance services Cantonal monopolies 
Federal monopoly Fire and natural damage insurance 
Insurance against workplace accidents 
(industry) 
Certain mortgage bonds Certain Swiss banks Issuance of "Schweizer Pfandbriefe" only 
through cantonal banks and banks whose 
mortgage loans amount to at least 60% of 
their balance sheet 
Chimney sweeping Official chimney-sweeps Ex clusive services providers in certain 
cantons 
LIECHTENSTEIN  
Electricity Liechtensteinische Kraftwerke (L KW) Exclusive production and distribution rights 
(except industry and large customer) 
Drinking water Gruppenwasserversorgung Liecht. Ober land Exclusive production and distribution rights 
(except industry and large customer) 
 Wasserversorgung 
Liecht. Unterland Exclusive production and distribution rights 
(except industry and large customer) 
Gas Liechtensteinische Gasversorgung Exclusive distribution rights 
Telecommunications network Liechtenstein TeleNet AG (LTN) Exclusive ownership rightsa 
Services  
Public transport by bus Ministry responsible for transport Exclusive supply right 
Postal services Liechtenstein Post AG Exclusive rights over letters and direct 
mailing up to 350g (with some exceptions) 
.. Not available. 
a LTN is committed to make its infrastructu re services available to telecommunications  licensees in Liechtenstein in a neutral,  
non-discriminatory, and cost-based manner. 
Source:  WTO Secretariat, based on information provided by the Swiss and Liechtenstein authorities. WT/TPR/S/141 Trade Policy Review 
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(iii) Developments in competition policy and price surveillance 
(a) Overview  
149. The lack of competition in the Swiss economy con tinues to be identified by the authorities as 
one of the main factors in the high prices of many products and services for sale on Swiss markets. 
The main causes of this lack of competition are id entified as:  (i) private sector agreements limiting 
access to markets;  (ii) border measures on certain products, such as agri-food goods;  and (iii) public sector measures also limiting market access within the domestic economy.  The effects of lack of 
competition on domestic standards of living are clearl y detrimental, but its effects on market access 
are less clear-cut.  The lack of ma rket contestability tends to inflat e the profit margins of operators 
already present in the market;  on the other hand,  the absence of an effective competition framework 
has made possible exclusive arrangements that prevent new, including foreign, companies from 
entering the market.  The Federal Council has recogni zed that the existing legislation on the internal 
market and on cartels did not produce the expected  results and launched revi sions to reinforcement 
them.
144 
150. Four main laws are in place on competition policy:  the Law on Cartels (LCart)145, amended 
in 2004;  the Federal Law against Unfair Competition146, amended in 2002; the 1995 Federal Law on 
the Internal Market147, which establishes the "Cassis de Dijon" principle for goods and services across 
Switzerland;  and the 1985 Swiss Fe deral Law on Price Surveillance148, which allows price 
investigations when competition is deemed to be lacking.  The Price Inspector, provided for by the 
latter, declared in 2003 that the lack of compe tition in the Swiss economy was the main cause of the 
high Swiss price levels by international comparison.149 
151. Under the Federal Law against Unfair Competiti on, any conduct or business that is deceptive 
or in another manner violates the principle of good faith dealing, and that affects the relationship 
between competitors or between sellers and purchas ers, is unfair and illegal. The Law provides for 
civil or criminal remedies. The latter include im prisonment up to three years or a fine up to 
Sw F 100,000. It contains the basic rules for the correct publishing of prices and for the prevention of 
misleading price comparisons. Detailed provisions ar e laid down in the Ordinance on the Notification 
of Prices.   
152. An amendment to the LCart entered into fo rce in April 2004.  Among the main changes, 
direct sanctions are now applicable for certain viol ations.  Prior to the amendment, a determination 
first had to be made of the unlawfulness of a restraint on competition;  as it did not in itself give rise 
to penalties, the determination had few practic al consequences for the company concerned;  
administrative or criminal sanctions could be impos ed only for subsequent non-compliance with such 
a determination or with an amicable settlement.  Th is considerably reduced the dissuasive effect of the 
legislation.  The "Vitamin Cartel" case, led by a Swiss firm and where high penalties were imposed on 
the participating enterprises abroad, but not in Swit zerland, strengthened the public perception of this 
shortcoming.  Also new in the 2004 amendment is the introduction of a leniency programme designed 
                                                      
144 See for example Federal Council (2002), Réponse du Conseil fédéral , interpellation 02.3292 – Loi 
sur le marché intérieur , 20 June 2002. Available at http://www.parlament.ch/afs/toc/f/gesch/f_mainFrameSet 
.htm. 
145 Loi fédérale sur les cartels et autres restrictions à la concurrence , RS 251. 
146 Loi fédérale contre la concurrence déloyale, RS 241. 
147 Loi fédérale sur le marché intérieur, RS 943.02. 
148 Loi sur la surveillance des prix, RS 942.20. 
149 See Price Inspector (2003), Surveillant des prix, Rapport annuel 2003 .  Available at www.monsieur-
prix.ch. Switzerland and Liechtenstein WT/TPR/S/141 
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to encourage companies to report the activities of a car tel in which they have been participating.  The 
amendment also modified the conditions under which mergers of media companies should be notified to competition authorities. 
153. The Competition Commission ( Commission de la Concurrence,  Comco) is in charge of 
enforcing Switzerland's competition legislation. It  currently consists of 13 members, who take 
decisions by simple majority.  Members, including the President and two Vice-Presidents, are nominated by the Federal Council;  they include independent experts as well as representatives of 
various interest groups.  A Secretariat carries out i nvestigations and submits the results to the Comco 
for decision.
150  The Secretariat can also  make recommendations and c onduct investigations on the 
basis of the LMI;  however, the Comco cannot im pose decisions and sanctions under this law. 
(b) Amendments to the Law on Cartels 
154. Amendments to the LCart entered into force on 1 April 2004.151  The legislative amendment 
also resulted in a modification of two existing ordinances.152  In addition, a new Ordinance on 
Sanctions entered into force153;  this defines the method of determ ination of sanctions and the nature 
of a leniency programme, and is, according to the auth orities, based to a large extent on EU law.  The 
leniency programme provided for by the 2004 amendment (Article 49a, al. 2 of LCart) is also defined 
in this new ordinance.  According to the aut horities, the programme is based on international 
standards, and has been discu ssed with members of the International Competition Network. 
155. Under the LCart, agreements - whether horizont al or vertical - are deemed illicit if they 
(i) have a significant effect on competition without being justified for specified reasons of economic 
efficiency;  or (ii) suppress "effective competition".  Agreements among competitors to fix prices, 
restrict quantities or segment markets are pr esumed to suppress "effective competition".   
Accordingly, the direct sanctions introduced by  the 2004 amendment apply to: hard core horizontal 
cartels (i.e. agreements among competitors that restri ct effective competition (Article 5);  hard core 
vertical restraints, which may consist of resale minimum price maintenance or fixed resale prices; agreements contained in distribution contracts that provide for territorial segmentation, to the extent 
that sales in these territories by third party distribut ors is prohibited.  This includes exclusive or 
selective distribution systems that prevent parallel impor ts (absolute territorial protection, Article 5);  
and abuses of dominant position (Article 7).   
156. Fines may reach 10% of the past three years' tu rnover achieved by the relevant enterprises on 
the relevant markets in Switzerland.  Sanctions can be applied only to companies, and criminal 
penalties cannot be applied to natural persons.  For all other types of anti-competitive behaviour, 
sanctions are envisaged only if the decision to  prohibit the anti-competitive behaviour is not 
respected. 
157. Article 6(1) contains a list of agreements that can  be considered, by Ordinance or notice, to be 
justified by efficiencies.  This list was extende d in 2004 to agreements aimed at enhancing the 
competitiveness of small and medium-sized enterpris es, provided that they have only a limited impact 
on the market.  The amendment allows cartels affecti ng only an "insignificantly small market share".  
This provision is expected to help small and medium-size enterprises to counterbalance the 
dominance of big enterprises.   
                                                     
 
150 Règlement intérieur de la Commission de la concurrence, état au 1er janvier 1997 . 
151 The LCart is available at:  http ://www.admin.ch/ch/f/rs/251/index.html. 
152 These are the Ordonnance sur les concentrations d’entreprises, RS 251.4 and the Ordonnance sur 
la perception d’émoluments dans la loi sur les cartels, RS 251.2. 
153 Ordonnance sur les sanctions en cas de restrictions illicites à la concurrence, RS 251.5. WT/TPR/S/141 Trade Policy Review 
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158. The amended legislation introduces a system of voluntary prior notificati on (Article 49 (3)).  
Companies having any doubt about the nature of a given agreement or practice must notify it to the 
Comco before it takes effects.  The Comco then has five months to state its opposition to the practice 
(Articles 26-27), in which case the company can renounce the practice so as to avoid sanctions. 
159. The LCart applies, in principle, to all anti- competitive arrangements producing their effects in 
Switzerland, regardless of the sector of economic activity or a company's ownership status.  Exceptions to the application of the LCart include areas where the Federal Council may grant exceptional authorization on the grounds of compelli ng public interest, or where other provisions of 
law restricting trade take precedence.  Examples of  the latter include provisions that establish an 
official market or price system or entrust certain  enterprises with the performance of public interest 
tasks, and grant them special rights (e.g. health car e, public transport, public  media, universal postal 
services, and agriculture).  In addition, the LCart does not apply to effects on competition that result 
exclusively from laws governing intellectual propert y, but it was extended to include restrictions on 
imports protected by intellectual property rights (see (iv) below).   
Vertical restraints 
160. In the consultations that led to the 2004 amendm ent, calls were made for measures against the 
isolation of the Swiss market, which was partly ascrib ed to vertical restraints to competition because 
of their potential capacity to segment markets and their role in maintaining high prices, notably by 
precluding parallel imports. Vertical contracts can reduce intra-brand competition (among distributors 
of the same brand) as well as inter-brand competition (among competing producers). 
161. On 18 February 2002, the Comco published a Communication on vertical agreements 
(CommVert) on the basis of Article 6 of LCart
154. It considered agreements that reserve exclusive 
resale territories as substantial restriction to comp etition, which is unjustified when passive sales 
outside the territory are either forbidde n or hampered. A second communication, of 
21 November 2002155, specifically concerns motor vehicle distribution agreements, and aimed to 
mirror the corresponding EU legislation (Chapter IV(3 )(i)).  Since 2002, some 80 vertical agreements 
have been examined by the Comco on the basis of the CommVert, but no illicit agreement was found.   
Dominant companies 
162. 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 competito rs and to purchasers and suppliers. The LCart as 
amended does not prohibit dominant positions, but only its abuse (e.g. refusal to deal, price 
discrimination, imposition of unfair prices or cond itions, restrictions on production, outlets, or 
technical development, subordinatio n of conclusion of contracts to  supply of additional goods and 
services by partners).  However, the propens ity of dominant positions to absolutely suppress 
"effective competition" may lead the Comco to pr ohibit the concentration that would create or 
strengthen them.  Therefore, for prior control purpos es, 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 le ast Sw F 2 billion or of at least Sw F 500 million 
in Switzerland;  and (ii) at least two of the en terprises concerned reported individual turnover in 
Switzerland of at least Sw F 100 million.    
                                                      
154 Communication sur les contrats verticaux – CommVert, available online at:  http://www.weko.ch/.  
155 Comco (2002), Communication concernant les accords verticaux dans le domaine de la 
distribution, available online at:  http://www.weko.ch/.  Switzerland and Liechtenstein WT/TPR/S/141 
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163. Prior notification of mergers or acquisitions over  specified thresholds is required in certain 
sectors.  The threshold for companies operating in the media sector (20 times the turnover, Article 9 (2)) was abolished by the 2004 amendment.   Thresholds for insurance companies are based 
on the aggregate annual gross premiums;  and for bank s and financial intermediaries, the threshold is 
now 10% of gross income.  In addition, the calcula tion method for thresholds applicable to financial 
intermediaries was adapted to the EU method. 
164. Notification is also required if a decisi on enacted by the Comco establishes that a 
participating firm occupies a dominant position in a market in Switzerland, and if the concentration in 
question involves either that market, a related ma rket, or an upstream or downstream market.  A 
concentration project may be implemented if the Comco does not open an investigation within one 
month from the date of notification. 
International cooperation   
165. The Comco maintains regular contact with bot h EU and U.S. competition authorities.   
However, there is no legal basis for exchange of information without the agreement of the parties 
concerned.  Switzerland therefore does not have international agreements providing for legal 
cooperation ( entraide judiciaire ) in competition policy.  The Comco and the seco participate in the 
work of several international bodies on compe tition policy, including the OECD (Competition Law 
and Policy, Working Parties, Joint Group on Trade and Competition), UNCTAD, WTO, the IMF, and the International Competition Network (ICN).  
(c) Revision of the Law on the Internal Market (LMI)  
166. The purpose of the LMI was to eliminate restra ints on competition arising from cantonal and 
communal regulations, with regard to both gove rnment procurement and worker mobility in 
Switzerland.  In March 2004, the Federal Council announced a revision of the law, noting that the 
LMI had not been successful in eliminating tec hnical and administrative barriers (at cantonal and 
communal level) that segment local markets and prevent competition.  These barriers have been 
identified by the Federal Council as one of the main  factors limiting economic growth.  The revision 
aims to effectively eliminate cantonal and communal  barriers to regulated activities, so as to allow 
persons to pursue these activities throughout Switzer land.  The revision should also allow the Comco 
to contest cantonal or communal deci sions found to be in breach of the law.  The areas identified by 
the Comco as subject to most protection include teachers, chimney sweeps, taxis, paramedical 
professions, opticians, estate agents and rental agen cies, sanitary fitters, circuses and other travelling 
shows, and door-to-door sales people.
156 
(d) Price surveillance  
167. The Law on Price Surveillance (LSPr) has not b een amended, and there have been no major 
changes to the framework of pri ce surveillance since the last TPR of Switzerland and Liechtenstein.  
The Price Inspector (appointed by the Federal Counc il) observes price developments in any market 
where competition is potentially hindered or impeded.157 Cartels and similar organizations are 
required to notify any price increases to the Price In spector.  Measures to eliminate or preclude abuse 
are taken with the consent of the parties involved;  however, companies or organizations that fail to 
meet (or attempt to avoid) recommendations (e.g. nego tiated or decreed prices) are liable to a fine of 
up to Sw F 100,000.  The Price Inspector also publishes an annual report on the main cases analysed 
                                                      
156 Le Temps , "La dynamisation de l'économie suisse dépendra de la Comco", 13 March 2004. 
157 Price Inspector online information.  Available at:  http://www.monsieur-prix.ch. WT/TPR/S/141 Trade Policy Review 
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over the previous year.  Since 2000, the Price Inspector has launched enquiries on:  medicine prices, 
electricity prices, telecommunication services, cable TV fees, and postal services. 
168. Swiss retail prices of several types of products  remain 20-30% higher than in neighbouring 
countries although changes have taken place sin ce 2000.  In the case of many food products, 
distribution systems are still organized on a nationa l basis because border controls persist and free 
trade agreements do not yet apply to a large share of agricultural products.  In certain areas of 
consumer durables, department stores run by large European distributors have made their appearance 
over the last decade on the Swiss market and contribute d to price convergence with the rest of Europe.  
The authorities have noted that extension of direct sa nctions to vertical restra ints might help overcome 
some of theses difficulties, although the prerequisites needed to make cartel legislation applicable had 
firs to be fulfilled. 
(e) Competition policy in Liechtenstein 
169. Liechtenstein does not have national competiti on legislation.  Competition issues are dealt 
with under international treaties to which Liechtenstein is a signatory, more precisely under the EEA 
and EFTA agreements.  The Office of National Economy has jurisdiction over competition issues, 
unless the jurisdiction of the State Court is provided.  In addition, the Law of 22 October 1992 against 
unfair competition deals with unfair behaviour or practices.  The Act of 23 October 2002 regarding 
the Consumer Protection contains the most impor tant rules for relations between consumers and 
businesses.  
170. Liechtenstein maintains price controls on pub lic transport, telecommunications, postal and 
medical services, and drugs and medical equipmen t.  Electricity and gas prices are set by two 
state-owned companies, although changes are under way.  Price controls maintained by Switzerland on agricultural products (Chapter IV(2)(ii )(c)) are also in force in Liechtenstein. 
(iv) Intellectual property rights (IPRs) 
171. Liechtenstein uses the Swiss legislation on patent s, but has its own legislation in the other IP 
areas.  In general, Liechtenstein's IP legislation is  comparable with that of Switzerland, on which it is 
largely based.  Liechtenstein also has to implemen t EEA rules on IP.  It cooperates with Switzerland 
in border controls.  The competent authorities for intellectual property issues are the Swiss Federal 
Institute of Intellectual Property
158, and the Liechtenstein Office of Economic Affairs.  Switzerland 
and Liechtenstein are members of, inter alia , the World Intellectual Property Organization, and 
parties to the European Patent Convention.   
172. Several Swiss laws relating to intellectual property are currently undergoing revision 
(mid-2004), to ensure compatibility with internatio nal intellectual property provisions;  they cover 
patents, protection of plant varieties, and copyright and neighbouring  rights. 
(b) Copyrights and related rights 
173. Switzerland's 1992 Federal Law on Copyright and Neighbouring Rights (LDA) defines the 
nature of protected works and authors159, as well as the scope of rights, the length of protection, civil 
and criminal penalties, and the possibilities for Cust oms' intervention.  In particular, it covers 
computer programs and the widespread use of pr otected works, including photocopies, copies of 
phonograms and videograms for private use, use of phonograms for broad casting or performance 
                                                      
158 Swiss Federal Institute of Intellectual Property online information.  Available at:  www.ipi.ch. 
159 Loi fédérale sur le droit d’auteur et les droits voisins , RS 231.1 . Switzerland and Liechtenstein WT/TPR/S/141 
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purposes, and rental of copies of works.  Compulso ry licences may be granted only for the production 
of phonograms.  Producers of phonograms are eligible for protection if they are nationals of a WTO 
Member or if the first publication of the sound r ecording took place in a WTO Member's territory.  
The law provides for protection for 70 years followi ng the author's death.  In 2004, the LDA was 
undergoing a revision to ensure compatibility with  the WIPO Performances and Phonograms Treaty, 
and the WIPO Copyright Treaty, and to adapt copy right and neighbouring rights protection to modern 
information technologies. 
174. From April 2004 onwards, parallel imports (and sa les) of videos of audiovisual work are 
prohibited when the work is still be ing shown in cinemas (Article 12 (1 bis)).  
175. Copyright protection in Liechtenstein is guara nteed by the Law of 19  May 1999 regarding 
Copyright and Neighbouring Rights.  Article 13 of th is law lays down the principle of international 
exhaustion of rights;  this principle does not howev er apply to rental rights.  A related ordinance 
governs the collective exploitation of authors’ right s and neighbouring rights, the supervision of the 
collecting societies, as well as measures relating to  the import and export of goods whose distribution 
within the country infringes copyright or neighbo uring rights.  Licences for the exploitation of 
authors’ rights have been granted by way of an i nvitation to tender.  Licences were granted in 2002 
for five years to four collecting societies: Pr oLitteris for literature, photography, and plastic arts; 
Swissperform for theatrical, music-dramatic, and audio-visual works; SUISA for musical, non-theatrical works;  and Suissimage for audio-visual works.  
(c) Trade marks 
176. The Swiss Law on the Protection of Trademarks and Indications of Source (LPM) defines 
protection for trade marks as well as the scope for Customs' intervention.
160  The right to a trade mark 
belongs to the person who first files the mark;  the mark should be used within five years of 
registration.  Opposition by the owner of an earlie r trade mark is possible within three months of 
publication.  The term of validity is ten years, re newable indefinitely. The related ordinance provides 
for national and international registration of tr ade marks, appeals procedures, and Customs' 
intervention.161 The Ordinance was modified in 2002 to, inter alia, enable trade mark registration by 
electronic transmission.  
177. In Liechtenstein, the  Law of 12 of December 1996 regardi ng the Protection of Trademarks 
and Geographical Indications protects manufactur ing, trading and service marks, geographical 
indications of goods, and commercial distinguishi ng signs.  Article 13 outlines the details of the 
exclusive right of a trade mark owner;  it also  provides for international exhaustion of rights. 
(d) Geographical indications 
178. The protection of geographical indications (G Is) is a priority for Switzerland;  the 
Government considers that GIs enable countries to promote trade through speci ality products, without 
subsidies, and constitute a means of informing consumers about the geographical origin, special 
quality, production methods or other specific characteri stics of a product that are due to its origin.  In 
the WTO, Switzerland supports an extension of the additional protection of GIs under the TRIPS 
Agreement to products other than wines and spirits.  GIs were the subject of several questions during 
the previous TPR of Switzerland and Liechtenstein.  
                                                      
160 Loi fédérale sur la protection des mar ques et des indications de provenance , RS 232.11 . 
161 Ordonnance sur la protection des marques , RS 232.111 . WT/TPR/S/141 Trade Policy Review 
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179. GIs of products and services are under the general protection of the LPM. Other Swiss 
legislation protecting GIs includes the Federal Law on Agriculture.162  This law defines production 
methods, product characteristics, types of GIs, as we ll as criminal sanctions and appeals procedures.  
Special provisions apply to wines (Articles 63 and 64).  The Ordinance on the Protection of 
Designations of Origin and GIs for Agricultura l and Derived Products deals with registration 
requirements and procedure.163  IP provisions regarding wine are also contained in the ordinance on 
Viticulture and the Importation of Wi ne (governing wine designations).164  These provisions have 
been modified since 2000, notabl y with respect to wine.  Special provisions are also in place 
concerning the "Swiss made" name on watches.165   
180. The LPM extends protection to indications of source in the field of services, indirect 
indications of provenance, and refere nces to properties or quality in re lation to the source (e.g. recipes 
that imply a geographical origin).  This law gr ants GIs automatic protection without any formal 
notification and registration procedures.  Howeve r, GIs for agricultural products and processed 
agricultural products (other than wines) may be re gistered with the Federa l Office of Agriculture 
(OFAG) of the Department of Economy.  Protection of geographical indications for wines can be 
obtained from the cantonal authorities, who establish the necessary rules with regard to registered 
appellations of origin. The cantons also maintain  a list of the production areas relating to their 
appellations of origin and indications of source. To  register a geographical indication, the applicant 
must be a group of producers representative of the product or service.  
181. For goods, the provenance criteria in general incl ude  the place of manufacture, and the origin 
of the basic materials and components used fo r manufacturing; compliance with manufacturing 
principles and quality requirements (customary or mandatory) in the specified geographical area may 
additionally be required.  For example, it is forb idden to use such expressions as "product prepared 
from a Swiss recipe" if this does not correspond to th e genuine origin of the product (Article 47(3)). 
For Swiss provenance, the criteria include names of  region, canton or locality, as well as the Swiss 
Federal Cross and indirect indications of source such as the Matterhorn and images of William Tell.166  
The origin of services is determined by the place where the supplying company has its registered 
office, or by the country or domicile of the persons exercising actual control over the policy and management of the business.   
182. Since the last TPR of Switzerland in 2000, four GIs ( indications géographiques protégées)  
and 13 appellations of origin ( appellations d'origine controllées  (AOC)) have been registered in the 
Federal Register
167, the most recent were "Munder Safran"  (AOC) , "Walliser Roggenbrot"  (AOC)  and 
"Berner Alpkäse"  (AOC) .  In November 2003, the term "Racle tte du Valais" or "Raclette" was 
accepted by an OFAG decision as an AOC.  This d ecision has been appealed by producers based in 
other Swiss cantons, and is therefore pending.   
(e) Industrial designs 
183. In 2002, new laws on designs entered into fo rce in both Switzerland and Liechtenstein.  
Liechtenstein's Law of 11 September 2002 on th e Protection of Design (Design Act) implements 
                                                      
162 Loi fédérale sur l’agriculture , LAgr; RS 910.1 . 
163 Ordonnance concernant la protection des appellations d'origine et des indications géographiques des 
produits agricoles et des produits agricoles transformés , RS 910.12 . 
164 Ordonnance sur la viticulture et l’importation de vin , RS 916.140 . 
165 Ordonnance réglant l'utilisation du nom "Suisse" pour les montres , RS 232.119. 
166 Loi fédérale du 5 juin 1931 pour la protection des armoiries publiques et autres signes publics, 
RS 232 21.  Available at:  http ://admin.ch/ch/f/rs/2/232.21.fr.pdf. 
167 Registre fédéral des appellations d'origine contrôlées et des indications géographiques protégées.  Switzerland and Liechtenstein WT/TPR/S/141 
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Directive 98/71/EC on the legal protection of desi gns and the Geneva Act of the Hague Agreement 
Concerning the International Registration of Industri al Designs of 1999.  The Act protects designs by 
registration and grants exclusive rights to the auth ors of a design or their successors in title.  The 
definition of a design according to the law is:  the appearance of a complete product or a part thereof 
that follows in particular from the characteristics  of the lines, contours, colours, shape, surface 
structure and/or the materials of the actual produc t and/or its decoration.  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 offe nsive to public taste.  The maximum duration of 
protection is 25 years. A five-year term of protecti on begins on the date of the deposit. It may be 
renewed for four consecutive five-year periods.  Ar ticle 11 of the Design Act stipulates the principle 
of international exhaustion of rights. 
184. Design owners may use a number of civil remedies to enforce their rights, including 
provisional measures.  In addition, penal sanctions  are foreseen to combat infringements of the law 
(illegal use of a protected design).  Customs author ities may intervene to prevent imports, exports or 
transit of illegally manufactured objects.  The Gene va Act entered into force for Liechtenstein on 
23 December 2003.  
185. Switzerland's new Federal Law on the Protec tion of Designs entered into force in 
July 2002.168  It protects configurations of products or  parts of products that are characterized 
particularly by the arrangement of lines, surfaces, contours or colours or by the materials used.  
Furthermore, the design has to be new and original .  The protection of a design is excluded if the 
design infringes federal law or international treaties, if the design is contrary to public policy or to 
accepted principles of morality.  As regards, inter alia , the duration of protection, civil remedies, and 
penal sanctions, the Law is very similar to Liechte nstein’s new Design Act.  On 11 September 2002, 
Switzerland ratified the Geneva Act, whic h entered into force in December 2003. 
(f) Patents  
186. Under the 1978 bilateral Treaty on the Protecti on Conferred by Patents for Inventions, 
Switzerland and Liechtenstein form a unitary territory for patents;  the applicable legislation is the 
1954 Swiss Federal Law on Patents (LBI) as amended.169  Therefore, patents delivered by the Swiss 
Federal Institute of Intellectual Property (FIIP) as well as European patents designating Switzerland 
are also valid in Liechtenstein.  A European pa tent application that designates Switzerland and 
Liechtenstein may be filed with either the FIIP or  directly with the European Patent Office.  An 
international patent application may be filed with either the Institut e or the WIPO.  In 2004, the LBI 
was being fundamentally overhauled to achieve ha rmonization with EC Directive 98/44/ECE relating 
to the legal protection of biotechnological inventions. 
187. The LBI provides for an action to revoke a patent in a situation where, two years after a 
compulsory licence has been granted on the grounds of non-working, production under this licence 
does not meet the demand of the Swiss market. Any interested person may seek the revocation.  
Importation of a patented product is  equated with exploitation. No compulsory licences have so far 
been granted;  accordingly, no patent has yet been revoked under this procedure.  
188. The LBI is currently being adapted, inter alia , to allow for ratification of the European Patent 
Convention (as amended in 2002), of the Agreement on the application of Article 65 of the European 
Patent Convention of 17 Octobe r 2001 ("Language Agreement") and of the Patent Law Treaty. 
                                                      
168 Loi fédérale sur la protection des designs , RS 232.12. Available at: 
http://www.admin.ch/ch/f /rs/2/232.12.fr.pdf. 
169 Loi fédérale sur les brevets d'invention , RS 232.14. WT/TPR/S/141 Trade Policy Review 
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(g) Plant varieties 
189. The law on the protection of plant varieties is  (September 2004) undergoing revision in view 
of Switzerland's ratification of the 1991 Act of the International Union for the Protection of New 
Varieties of Plants (UPOV) Convention.  Switzer land is a member of the 1978 Act of the UPOV. 
(h) Layout-designs (topographies) of integrated circuits 
190. Topographies of semiconductor products are prot ected by the Federal Law on the Protection 
of the Topographies of Semiconductor Pr oducts (LTo) and its Ordinance (OTo).170  No significant 
change to these provisions has been introduced since 2000.  The LTo protects three-dimensional 
structures (topographies) of semiconductor products and applies to topographies devised by persons 
of Swiss nationality or residence or professional reside nce, to topographies that were circulated for the 
first time in Switzerland, and to topographies that are protected in Switzerland by virtue of international treaties. Protection is accorded afte r registration in the Register of Topographies, 
administered by the FIIP.  The Ordinance of 30 January 2001 regarding the Protection of Topographies established a Topography Register at  the Liechtenstein Office of National Economy. 
(i) Protection of undisclosed information 
191. A new Federal Law on Medicina l Products and Medical Devices (RS 812.21) entered into 
force on 1 January 2002.  This new law and the related ordinance replace the Implementing 
Regulations to the Intercantonal Convention on the Cont rol of Medicines.  In terms of substance, the 
new law incorporates, in principle, the regulations hitherto contained in the Intercantonal Convention 
with respect to the protection of undisclosed information.  In conformity with Article 39.3 of the 
TRIPS Agreement and prevailing international practice in that area, the new regulations stipulate that 
a second applicant shall not refer to the results of pharmacological, toxicological, and clinical tests of 
a previous applicant unless so authorized in writing by the holder, or unless the authorization for the 
original preparation is more than ten years old.  In cases where a new indication, mode of administration, galenical form, or dosage, or applica tion to a new animal species is authorized for the 
original preparation, the period of protection is of three or five years, depending on the degree of 
therapeutic improvement. 
(j) Enforcement 
192. Violation of Swiss intellectual property law leads to civil and criminal law sanctions, 
including compensation for damages, confiscation of goods in violation of the law, imprisonment for 
a maximum of a year, and/or a fine up to a maximum of SwF 100,000.
171  Decisions are made in the 
first instance by cantonal courts and can be a ppealed only to the Supreme Federal Court.  For 
administrative matters, the relevant authority for trade marks and patents is the Federal Appeals 
Committee ( Commission de recours en matière de propriété intellectuelle ), whose decisions are final;  
regarding geographical indications of agricultura l products and processed agricultural products, the 
authority is the Federal Agricultural Office (advi sed by the Commission for Appellations of Origin 
and Geographical Indications), whose d ecisions may be appealed before the Commission de recours 
du Département féd éral de l’économie and thereupon before the Fe deral Supreme Court.  
Developments regarding enforcement include the entry into force of a new law in January 2004.172  
                                                      
170 Loi fédérale sur la protection des topographies de produits semi-conducteurs, RS 231.2, 
Ordonnance sur la protection des topographies de produits semi-conducteurs, RS 231.21. 
171 Articles 66-86 of LBI, Article 69 of LPM, Ar ticles 61-73 of LDA, Articles 31-45 of LDes and 
Articles 10-12 of LTo. 
172 Loi fédérale sur les fors en matière civile, RS 272. Switzerland and Liechtenstein WT/TPR/S/141 
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This law defines the fora for court jurisdiction in  civil law disputes in the national context for the 
various fields of civil law (e.g. mandatory or special  fora for specific legal disputes or areas of law).  
193. There has been no specific cha nge in jurisprudence regardi ng parallel imports.  The Swiss 
Federal Tribunal upholds the principle of internatio nal exhaustion and authori zed parallel imports for 
copyright and trade mark rights.  In contrast, in the case of patent rights, the Government upholds the 
principle of national exhaustion, following the Kodak ruling.173  In order to avoid parallel imports 
being hampered by patent law, the scope of the new law on competition (the LCart (Article 3 al. 2)) 
was extended to include restrictions on imports protected by intellectual property rights (section (4)(iii) above).  This extension, combined with the new provision against abuse of territorial 
protection (Article 5 al. 4), is expected to better combat restrictions to parallel imports.
174   
194. In Liechtenstein, international exhausti on is set by law for trade mark rights175, copyright, 
rights related to topography, and the new design act.176  On patents, certain amendments were made to 
the bilateral agreement concluded by Switzerland and Liechtenstein to comply with the EU principle 
extended to the EEA:  the ame ndments allow the application of EEA-wide exhaustion in 
Liechtenstein.177  Thus, prevention of parallel imports of  patented products from EEA member 
countries is possible in Switzerland but not in Li echtenstein.  In relation to EEA countries, the 
principle of EEA-wide exhaustion prevails;  impor ts from the other EEA members to Liechtenstein 
are made possible thanks to the MCSM (Box II.1) .  However, the Swiss principle of national 
exhaustion of patents applies to imports to the customs territory from non-EEA member countries. 
                                                      
173 Arrêt du Tribunal Fédéral, 126 III 129. 
 174 On national exhaustion and exclusive distribution or importation rights in Switzerland, see in 
particular. Federal Council (2000), Importations parallèles et droit des brevets, Rapport du Conseil fédéral du 
8 mai 2000 en réponse à la question de la Commission de l'économie et des redevances du Conseil national 
(CER) du 24 janvier 2000 .  Available at: http://www.evd.admin.ch;  Federal Council (2002), Importations 
parallèles et droit des brevets - Rapport du Conseil fédé ral en réponse au postulat de la CER-N (00.3612) et 
concernant les diverses réglementations coexistant sur le marché des médicaments à usage humain , 
November 2002.  Available at: http://www.evd.admin.ch;  and Comco (2003), La Comco encourage le principe 
de l’épuisement international en dro it des brevets pour favoriser les importa tions pa-rallèles et lutter contre le 
niveau de prix élevé en Suisse , Press Release of 5 March 2003.  Av ailable at: http://www.weko.admin.ch. 
175 The holder of a trade mark has the right to prohibit third parties from using it for goods that have 
been marketed under it by him or with his consent in a country outside the EEA only if such use creates a risk of 
deception for the consumer (Article 16 , Paragraph 6 of the Trademark Act). 
176 Articles 13 of the Copyright Act, and 7 of the Topography Act.  However, rental rights are excluded 
from this provision. 
177 Article 1 of the Additional Agreement of 2 Novemb er 1994 to the Treaty of 22 December 1978 
between Switzerland and Liechtenstei n on the protection conferred by patents for inventions (see also WTO 
document IP/N/4/LIE/1).