Switzerland abolishes tariffs on industrial product imports

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The move will lead to direct savings and less administration, the government said, along with lower prices for products from industrial machinery to clothes and fridges. © Keystone / Christian Beutler

Switzerland has scrapped import duties on industrial products, the government said on Tuesday. The move aims to lower costs for consumers and manufacturers.

This content was published on January 2, 2024 – 12:40


Keystone-SDA

The State Secretariat for Economic Affairs (Seco) expects this to result in a total annual gain of over CHF860 million ($1 billion) from lower purchasing and administrative costs for companies as well as productivity gains.

Seco said in a statement on Tuesday that Switzerland no longer charges import duties on industrial goods of any origin as from January 1, 2024.

“Building on a decade of groundwork, this is a significant trade policy measure with an estimated total welfare gain of over CHF860 million a year for the Swiss economy,” it said.

The abolition of industrial tariffs was approved by parliament in October 2021 as an amendment to the Customs Tariff Act.

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“The abolition of industrial tariffs strengthens Switzerland as a business and industrial location by reducing the financial and administrative burden on companies and consumers,” Seco said.

In Switzerland, industrial products include materials for production processes such as capital goods, raw materials, salt, semi-finished products and machinery, as well as consumer goods such as bicycles, clothing and shoes. It does not apply to agricultural products such as live animals, plants, seeds and animal feed.

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No measures have been taken to compensate for lower customs revenue, the government said, although it expects higher economic output to generate higher tax receipts in future and offset the loss.

“Viewing the economy as a whole, the positive effects will significantly exceed the expected loss of income for the federal government,” it added.

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