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Created on 26.08.2024
Import and customs clearance: controlling costs and processes
Professional processing of customs clearance and a smart approach to foreign currencies are preconditions for successful imports. We asked the PostFinance currency experts and the CEO of Zollschule for advice. In addition, we answer questions about VAT when importing into Switzerland, customs costs and customs accounts in the FAQ.
At a glance
Customs regulations, VAT, etc.: importing is not business as usual. When importing, it is always necessary to take to two legal systems into consideration – Swiss law and the law of the country of origin.
First, it is necessary to check whether the product is even permitted in Switzerland.
It may be worth having a foreign currency account for the import business – also as a basis for foreign exchange trading to protect against risks.
With PostFinance, you can also process international payments easily.
For companies that are importing into Switzerland for the first time, or that do so only sporadically, many issues need to be addressed. In particular, it is important to ensure that customs clearance is carefully organised when importing goods into Switzerland and to get to grips with the costs for foreign business. What issues require particular attention and what is the best way to proceed?
Customs clearance when importing goods into Switzerland: expert interview with the customs specialist
Customs clearance when importing into Switzerland is often a challenge for companies. We asked Claudia Feusi, CEO of ZFEB Customs & Trade Consultants, a.k.a. zollschule.ch, what the most important steps are when importing and what companies need to take into consideration.
Claudia Feusi, CEO of ZFEB Customs & Trade Consultants, a.k.a. zollschule.ch.
What are the basic steps when a company wants to import goods from abroad for the first time?
In addition to the usual elements of contracts, all transport and customs-related issues must be negotiated and defined in the contract of sale. This also includes clarification of whether the goods are even permitted in Switzerland and specification of the delivery conditions. The second step is then to organize the transport. The third step is to ensure customs clearance in Switzerland. This is normally carried out by the forwarder for a fee. You can find details about the individual steps and more information in the “Import processing” checklist on our website.
What is your most important advice regarding importing?
First of all, the company must ascertain whether the product is even approved for the Swiss market, or how it can be adapted to meet the standards for product safety (more information at The link will open in a new window seco.ch ) and distribution, and whether other orders not prescribed by customs law need be taken into account (more information at The link will open in a new window bazg.ch ). These points may concern topics such as ingredient lists (for example, in Switzerland food additives are subject to different reference amounts than in the EU), labels in our official languages, CE marking and many other aspects that are easy to forget – especially when a start-up or SME is importing for the first time. The transport process and customs formalities should also be clarified from the outset: whose task is it to select which forwarder? Who will handle the customs formalities during importing? Who will cover which costs? In foreign trade, this is defined in the Incoterms – the delivery conditions defined by the International Chamber of Commerce (ICC). Here is another general recommendation: I would always choose a clause specifying that each party is responsible for customs formalities in their own country – suppliers in their country and I, as the buyer, in my country. Expressed in Incoterms, this means not accepting the DDP and EXW clauses.
What are the greatest challenges when importing?
Importing is not business as usual – even if I and my German supplier speak the same language, for example. When it comes to importing, two areas of law must always be taken into account: Swiss law and the law of the country of origin – and this concerns various aspects of contract law, customs law and transport law. Additional aspects include export control regulations, embargoes, customs formalities, free trade agreements, etc. There are many pitfalls that may lead to customs reclaims going back three to five years. Some companies are unaware of this.
How can companies avoid mistakes when importing?
Getting an import professional on board as soon as possible. There is a lot of information about import and export on the internet, but firstly, as I mentioned, the matter is extremely complicated and touches upon many areas of law, and secondly, the information must be applied to one’s own business. It makes a difference whether I am importing electronics or food products: every sector and every product has its own peculiarities. You might also ask your carrier for advice, but you run the risk of receiving a one-sided perspective that only takes transport law into consideration and does not include other aspects. An import professional can give SMEs precisely the information they need. That way, companies don’t need to know all the Incoterms, but only the two or three that are relevant to their business. A few hours of external consulting are often enough.
Expert tips for handling foreign currencies
Business transactions with partner companies in foreign countries are often conducted in foreign currencies. This is worth a closer look. What does the company need to make the processing of payments in foreign currencies as cost-effective as possible? And how can it avoid foreign currency risks? Stefan Zosso has tips regarding these issues. He is Senior Product Manager for Foreign Exchange Transactions at PostFinance, and in this role he is responsible for the financial and technical management of the foreign exchange transactions product category.
Stefan Zosso, Senior Product Manager for Foreign Exchange Transactions at PostFinance.
Exchange rate fluctuations can impact the operating result. In other words: be sure to factor exchange rates or even ranges of exchange rates (e.g. an upper and lower limit for the exchange rate) into your price calculations. With the corresponding foreign currency accounts (see tip 2), you have the flexibility to respond immediately to a rising or falling exchange rate on the basis of the price calculation you have made (exchange rate range).
If your company regularly imports goods or semi-finished products and pays for them in foreign currencies, it is worth having foreign currency accounts in the corresponding currencies. Foreign currency accounts are not only the basis for global trade and for foreign exchange transactions (spot transactions or foreign exchange forward contracts), they also make it possible to manage the foreign currency.
Companies that obtain goods or services from abroad hope for falling or consistently low exchange rates until they have to pay for their purchase. If, unexpectedly, the exchange rates are significantly higher when the payment is due, this can be expensive since the purchased goods consequently cost considerably more. To protect against foreign currency risks, foreign currency accounts give you the opportunity to convert incoming payments into Swiss francs later on.
Foreign exchange forward contracts are another way to counteract exchange rate fluctuations. Foreign exchange forward contracts guarantee that the exchange rates fixed today will be applied at the desired time in the future, regardless of the development of the official exchange rate.
Spot transactions or foreign exchange forward contracts for imports?
Companies that import basically have two options for buying or selling foreign currency: spot transactions and foreign exchange forward contracts (with or without a swap).
Have a choice of three value dates (date of credit/debit on the account) and three different exchange rates so they can simply choose the most advantageous option.
Want to take advantage of the best rate currently available.
Want to obtain foreign currencies early for reasons of liquidity. Example: your company buys goods from the EU area and pays in euros. You can hedge against a negative exchange rate trend by buying a “stockpile” of euros at a favourable exchange rate by means of spot transactions.
Were expecting exchange rates to trend in an upward direction and want to take advantage of the current exchange rate.
Need immediate access to foreign currencies to meet obligations in the course of their business.
Want to sell a foreign currency for a profit because exchange rates have risen.
With online currency trading (“Purchase/sell foreign currency” tile, or under ”Foreign exchange trading” in the PostFinance app), you can make as many rate queries as you like and try out entering amounts with no obligation to buy. For each rate query, PostFinance offers a choice of three value dates.
Wish to safeguard a future cash flow
Have guaranteed exchange rates up to two years in the future with forward contracts
Want planning security
Good to know: with a forex swap transaction, you can sell a currency on spot and at the same time repurchase it forward at a predetermined rate – or vice versa.
Open a foreign currency account
All you need at PostFinance for foreign exchange trading is a business account in Swiss francs and an account in the corresponding foreign currency. You can open a foreign currency account quickly and easily in e-finance or in the PostFinance app.
If a Swiss SME imports goods into Switzerland, it must pay VAT – in this case, it is referred to as import tax. The purpose of import tax is to prevent companies that import goods from abroad paying less tax than companies that buy the same goods in Switzerland. Some goods are exempt from import tax. The decisive factor for customs formalities is often whether a company is entitled to input tax deductions.
In principle, all trade merchandise is subject to customs duty. There is no tax-free limit as there is for travellers, but there is a duty-free threshold: customs duty is only levied for amounts exceeding five francs per customs declaration. Customs duties vary from one product to another. The The link will open in a new window customs rate is based on the The link will open in a new window customs tariff number.
If you procure goods from a The link will open in a new window free-trade zone, it is possible to save import duties with a corresponding declaration of origin from the supplier. For this, the preferential origin criteria must be fulfilled.
The CSP account (also referred to as a customs account), where “CSP” stands for “centralised settlement procedure” of the Federal Customs Administration. With this account, the importer does not pay customs duty directly at the border or through the forwarder for a disbursement fee, but instead receives an invoice from the Federal Office for Customs and Border Security later on.
To open a CSP account, you must register with the Federal Customs Administration. Once your registration has been authorized, you will receive your CSP account number and can begin to pay and manage your customs duties. In the case of regular imports, it may be worth considering The link will open in a new window opening a customs account.
On the Confederation’s SME portal for small and medium-sized enterprises, you will find lots of helpful information on customs formalities.
