Additional specifications and requirements

Tariffs and nontariff barriers for exporting to Switzerland for a German construction company (pre fabricated houses)

Tariff barriers

The Swiss Customs Tariff uses the Harmonized System for the classification of goods. Swiss custom duties are generally specific rather than ad valorem (i.e. according to value).

Prefabricated components are considered a non-ad valorem tariff (NAV) 1, and, therefore, generally fall under the category of receiving specific tariff rates: namely, tariff is levied according to components such as weight, volume, and bulk of the goods. Certain units of currency are levied per unit of quantity (e.g. 2.00 Swiss Francs per kg). Sometimes, compound rates that consist of an additional ad valorem duty are added. The third category consists of "mixed duty rates" where either an ad valorem or simple tariff rate is chosen for specific products. The construction company can, also, expect the possibility of a Technical duty rate where certain complex technical factors of the product (such as its value) are taken into account.

If the specific tariff rate is selected, which it, generally, is for prefabricated components, packaging materials, too, are included in the weight calculation, and, unless some alternative duty of calculation is specified, duties are levied per 100kg gross weight2.

Transit goods are exempt from duty if they are accompanied by appropriate paperwork. Switzerland, being a classic transit territory, insists on exact documentary detail, and, therefore, it is often recommended to hire a custom's broker or forwarding agent to handle formalities. This also applies to the handling of temporary import permits.

Being that the construction company in question originates from Germany, tariff reductions may be in place3, since customs reductions do, oftentimes, exist for many developing countries, European Union-countries, and European Union-countries. As validation of country of origin, a certificate of origin is required.

Non-Tariff Barriers

Non-tariff barriers are these barriers that restrict imports abut are not in the usual form of tariffs.

In Switzerland, export formalities often differ widely from those used on other countries, even neighboring ones. In recent years, Swiss policies have been more closely formalized to resemble requirements of the World Trade Organizations (WTO), which means that non-tariff limitations are almost non-existent. Non-tariff barriers have been almost all converted into tariffs, and support measures or subsides have been greatly reduced4.

In most cases, imports are subject to the amount of mass that one is permitted to bring into the country. Here an import license is required which -- problematic to our German company -- is granted only to importers resident in Switzerland. However, our company need likely not worry about import controls, since import regulations and controls only apply to products under monopoly control such as medication.

Quota amounts are subject to annual review, but again our company is likely not going to be concerned with this since, although largely restricted to goods from developing countries, quotas are imposed only on textile goods and clothing,

Exchange control is the responsibility of the Central bank and is administered by authorized banks 4.

In short, our German construction common will be faced with minimal to no non-tariff restriction whatsoever.

Technical Barriers to Trade

Included under non-tariff barriers is Technical Barriers to Trade - a category unto itself, which entails that, each and every item of prefab and connected to prefab that the company imports into Switzerland has to cohere to mandatory technical regulations and voluntary standards that define specific characteristics. These define elements of the products that the company can import such as its size, shape, design, labelling / marking / packaging, functionality or performance. so-called "conformity assessment procedures then check where the German company will have accorded to these regulations, and regulation is monitored by use of certification, product testing, and/or inspection.