Questions on the China free trade agreement

What is accepted as proof of direct consignment from China?

For pure air freight shipments, the air waybill (AWB) serves as proof.

For shipments sent by sea from a port in the EU with a Switzerland-China transport document, the transport document serves as proof provided the entire transport from the EU port to the destination in China is covered. This also applies if the goods are transshipped in Hong Kong or Macao and transported onward to China from there.

For shipments with more than one transport document for the Switzerland-China route, as before, authorized exporters are exempt from presenting a "Non-Manipulation Certificate," but the commercial document with the origin declaration must be supplemented with additional information. See the circular from the Federal Customs Administration: Free Trade Agreement Switzerland-China Direct Consignment (Update, as of 28.1.2016).

Non-authorized exporters must present a "Non-Manipulation Certificate."

From when can my goods be imported into China duty-free?

Tariff dismantling in China takes place gradually — the phasing is determined by customs tariff numbers. Some goods are immediately exempt from duties, while for others the tariff reduction takes place over 5 to 10 years; for certain products even over 12 or 15 years.

The first reduction took place on 1 July 2014, the date the agreement entered into force. The next step in tariff dismantling takes place on 1 January 2015, and so on, until the respective tariff dismantling is completed.

The currently valid preferential tariff rates are available in the customs database.

Where can I find the list rules for the free trade agreement?

The list rules are available as usual in Tares as well as in Service Document D.30 of the Customs Administration.

The key points summarized briefly:

WO (Wholly obtained) = wholly obtained in Switzerland or China (primary product)

CC (Change of Chapter) = change at chapter level (2-digit HS heading)

CTH (Change of Tariff Heading) = change at heading level (4-digit HS heading)

CTSH (Change of Tariff Subheading) = change at subheading level (6-digit HS heading)

VNM% (maximum percentage of the value of non-originating materials) = value-based list rule (maximum percentage of the value of non-originating materials used without preferential origin Switzerland/China)

A general value tolerance of 10% of the ex-works price applies for WO, CC, CTH, and CTSH.

We are an authorized exporter (AE) — what do we need to pay special attention to with the new agreement with China?

The origin declaration on the invoice deviates from the standard text and must be drafted in English. As the "Registration No.," the number of the AE authorization must be stated without the year. Furthermore, a 23-digit serial number is required. In addition, electronic transmission is provided for origin declarations. Details on the AE data exchange can be found on the website of the Federal Customs Administration: Authorized Exporter.

As a non-AE, can I also issue an origin declaration on the invoice for low-value goods, as in other agreements?

No, under the agreement with China, only authorized exporters may issue origin declarations on the invoice. All other exporters must use the EUR.1 CN movement certificate. In field 8, in addition to the customs tariff number and goods description, supplementary information on the origin criterion must be provided:

WO = wholly obtained in Switzerland or China (primary product)

WP = produced exclusively with originating materials from Switzerland or China

PSR = goods produced with non-preferential materials that fulfill the product-specific list rules

Does the agreement also apply to imports into Switzerland?

Yes, on the Swiss side (i.e., for imports into Switzerland), most tariffs were immediately reduced to 0% upon entry into force. A Form A is no longer required and has therefore not been usable for imports since 1 July 2014.

How long is the deadline for subsequent submission in the case of provisional assessments (imports into Switzerland)?

If no valid proof of origin is available at the time of customs declaration, the person liable to declare may apply for provisional import assessment for goods covered by the agreement. Under current administrative practice for free trade agreements, the proof of origin must be submitted within 2 months (validity period of provisional assessment; the person liable to declare may also submit a written and justified request for an extension before the deadline expires).

Is cumulation possible under the free trade agreement?

The agreement applies bilaterally between Switzerland and China. It therefore cannot be cumulated with other EFTA states or other countries. For example, goods imported from China at preferential conditions cannot be re-exported preferentially to the EU without sufficient processing.

Does the proof of origin under the FTA Switzerland–China have to be placed on the invoice?

No. The origin declaration may also be placed on a commercial document other than the invoice under this FTA. In that case, the alternative commercial document must be uploaded in the EACN. It is important that the goods are delivered directly (direct consignment provisions).