Import and Export in Switzerland: 5 key points not to overlook

However, to ensure the success of your cross-border import and export operations, there are five key points that require particular attention. Here they are!

#1 Volatility in the EUR/CHF exchange rate

Fluctuations in the exchange rate between the euro (EUR) and the Swiss franc (CHF) pose a significant risk for cross-border importers and exporters: currency risk.

Indeed, due to the time lag between the invoice date and the date of payment, both buyers and sellers run the risk that the value in local currency of an invoice denominated in a foreign currency may decline.

Far from being merely trivial, these fluctuations in the EUR/CHF exchange rate have a direct impact on your profit margins and your company’s profitability. 

In 2015, the sudden surge in the value of the Swiss franc against the euro – by more than 20% – caused considerable concern for Swiss exporters and European importers…

To avoid this sort of disappointment, you can implement a hedging strategy to offset your exposure to currency risk by buying or selling financial derivatives. Alternatively, you can simply lock in your exchange rates in advance using our business solution.

#2 Your broker’s currency exchange fees

When converting your Swiss francs into euros (or vice versa), your financial intermediary earns a fee by applying a foreign exchange margin of varying transparency. 

However, it is in your best interests to understand exactly what fees are being charged, so that you can be sure you are getting a truly competitive exchange rate!

Non-specialist banking intermediaries tend to offer unattractive exchange rates, coupled with a complex fee structure riddled with ‘hidden’ charges.

Don’t be taken in – insist on a competitive and transparent quote. Saving a few tenths of a percentage point isn’t insignificant when you apply it to your turnover or your purchase invoices.

> Use our online
simulator to calculate the savings you could make. Please note, however, that whilst it is in your best interests to minimise your currency exchange costs, you should also consider your broker’s credibility, quality, expertise and responsiveness!

#3 Export risk insurance

To ensure that your commercial contracts are properly fulfilled, it is advisable to protect yourself against the main risks that could affect your export operations, whether these risks arise during the performance of the contract or when the debt is repaid.

In Switzerland, the Swiss Export Risk Insurance (SERV) enables you to effectively protect your operations against political risks and del credere risk (commercial risk). In France, you can turn to the guarantees provided by the Public Investment Bank (BPI).

#4 Administrative formalities

Goods entering Switzerland must be declared via an import customs declaration, accompanied by the required documents. Proofs of origin, invoices, authorisations… the exact list of documents required depends on the nature of the goods.

Goods leaving Switzerland must be covered by an export customs declaration, which must also include the necessary documents depending on the goods being exported.

The tariff numbers required for these formalities can be found on the TARES website.

NB: If you send goods on a regular basis, you can also apply for Authorised Consignor status to simplify the declaration process, and then use the EDa procedure to simplify the customs clearance process for your goods.

#5 Customs duties and VAT

Finally, whilst goods exported from Switzerland are exempt from VAT and customs duties on the Swiss side, imported goods are subject to taxation. 

The customs duties applied to imported goods will depend on a number of factors (type, weight, quantity, etc.). As for VAT, it will apply at a standard rate of 7.7%, with a reduced rate of 2.5% for certain cultural or medical goods, amongst others.

Now that currency exchange issues and administrative matters are under control, you can focus all your attention on what really matters: growing your business!