Switzerland allows a temporary exempting of custom fees for textile pre-materials
Swiss Federal Government has decided on November 18, 2015 to allow a temporary reduction of custom fees on textile pre-materials, effective as of January 1, 2016. This measure should help the sector to improve its competitive position
The Swiss textile industry is exporting nearly 80 % of its production. The sourcing of textile pre-materials are subject of import duties and endanger the competitive position of such textile companies. The value of custom fees for textile pre-materials 2011 – 2014 amounted to 4.3 % on average. In comparison, the average custom duties of pre-materials of other industrial sectors reached only to 0.5 %.
When certain negative economic conditions are taking place, the Swiss government – by applying article 4/3b of the custom law – can decide that the duty can be levied temporary totally or in parts for specific products. Based upon this rule the Swiss government reduces the duty for 60 tariff numbers for four years to nil CHF. The federal government has responded to an intervention of Swiss Textiles, the umbrella organisation of Swiss textile and clothing federation. The duty reduction improves the general trade conditions for the sector. The measure allows comparable competitive conditions as existing for the major competitors in the EU.
The duty reductions will deliver lower fiscal benefits in the order of around CHF 3 million annually. On the other hand, such measure will have a positive effect on the Swiss Economy.