Switzerland’s Federal Council in a recent meeting approved the ordinance on the temporary suspension of customs duties on textile input and intermediary materials. This will come into effect on 1 July 2019.
The country’s textile sector is hugely dependent on other nations for inputs and intermediary materials for production.
The import of the above materials is burdened with customs duties that are higher compared to input materials for other industries in the country. Expectedly, heavy customs duties end up making the finished products very expensive.
Reportedly, these heavy duties which were initially set to safeguard the country’s domestic textile sector have now started impacting severely.
The Council has positively responded to the request made by Swiss Textiles Association to suspend customs duties on all textile input and intermediary materials. The duty suspension will lead to lower customs revenues of around CHF 3 million annually. This is in line with Swiss Federal Council’s intent to eliminate industrial tariffs.
In 2016 also, the Federal Council had temporarily lowered the customs duties.