Essential terms in customs law, compliance and international trade in Switzerland
Set of regulatory measures and internal procedures aimed at preventing the use of the financial system for money laundering purposes. In Switzerland, AML obligations are primarily defined by the Anti-Money Laundering Act (AMLA, SR 955.0) and FINMA's Anti-Money Laundering Ordinance.
View expertise →Process of verifying client identity and understanding their economic profile before establishing a business relationship. KYC includes identification of the contracting party (art. 3 AMLA), identification of the beneficial owner (art. 4 AMLA) and ongoing monitoring of the relationship.
View expertise →EU climate policy instrument requiring importers to pay a carbon price corresponding to CO2 emissions embedded in imported products (cement, steel, aluminum, fertilizers, electricity, hydrogen). Entered its definitive phase in January 2026 with the obligation to purchase CBAM certificates.
View expertise →Criteria used to determine the country of origin of goods for the purpose of applying tariff preferences under free trade agreements. Main criteria include change in tariff heading (CTH), value-added criterion and specific processing. In Switzerland, rules of origin are defined in EFTA and bilateral agreement protocols.
View expertise →Operation of assigning a nomenclature code (Harmonized System HS, TARIC for EU, or Tares for Switzerland) to imported or exported goods. Classification determines the applicable duty rate, trade policy measures and required formalities. Classification errors are the leading cause of customs reassessments in Switzerland.
View expertise →Entity recognized by FINMA responsible for supervising non-banking financial intermediaries in anti-money laundering matters. Main SROs in Switzerland are SRO-SBA (Swiss Bar Association), SRO-FSN (notaries), VQF and PolyReg. SRO membership is mandatory for any financial intermediary not directly supervised by FINMA (art. 14 AMLA).
View expertise →Independent public law authority responsible for financial market supervision in Switzerland. FINMA supervises banks, insurance companies, stock exchanges, securities dealers and collective investment schemes. It recognizes and supervises SROs and can impose administrative sanctions (art. 29-37 FINMASA, SR 956.1).
View expertise →Federal Act on Combating Money Laundering and Terrorist Financing (SR 955.0). It defines due diligence obligations for financial intermediaries: verification of contracting party identity, identification of beneficial owner, clarification obligation in case of suspicion and reporting obligation to MROS.
View expertise →In-depth investigation and audit process conducted before a transaction (acquisition, investment, partnership) to assess legal, financial, tax and operational risks. Under Swiss law, due diligence typically covers contract analysis, regulatory compliance, pending litigation, intellectual property and tax aspects.
View expertise →Federal service attached to the Federal Office of Police (fedpol) responsible for receiving, analyzing and transmitting suspicious activity reports related to money laundering. Any financial intermediary with a founded suspicion of money laundering must report to MROS without delay (art. 9 AMLA).
View expertise →Person who holds or has held a prominent public function (head of state, minister, parliamentarian, senior judge, senior military officer, public enterprise executive). PEPs, their family members and close associates are subject to Enhanced Due Diligence due to increased corruption and money laundering risk.
View expertise →Customs status granted by FOCBS to companies demonstrating a high level of reliability and customs compliance. AEO status offers significant advantages: reduced physical inspections, access to simplified procedures, priority clearance and mutual recognition with the EU. Conditions: no offences, reliable accounting system, financial solvency (art. 42a CA).
View expertise →Alternative dispute resolution method whereby parties entrust the resolution of their dispute to one or more private arbitrators rather than state courts. International arbitration is governed in Switzerland by Chapter 12 of the PILA (SR 291). The arbitral award is enforceable in over 170 countries through the 1958 New York Convention.
View expertise →Convention on the Recognition and Enforcement of Foreign Arbitral Awards, ratified by over 170 states. It guarantees that an arbitral award rendered in a signatory state will be recognized and enforced in any other signatory state, subject to exhaustively listed grounds for refusal (art. V).
View expertise →Swiss federal authority responsible for collecting customs duties, monitoring cross-border goods traffic and border security. FOCBS (formerly FCA) administers the Swiss customs tariff (Tares), issues import/export authorizations and conducts customs controls. Headquartered in Bern.
View expertise →Federal body attached to EAER responsible for implementing international economic sanctions in Switzerland. SECO publishes and updates lists of sanctioned persons and entities, as well as embargo measures (Embargo Act, EmbA, SR 946.231). Every Swiss company must screen its counterparties against SECO lists.
View expertise →Rules published by the International Chamber of Commerce (ICC) defining the respective obligations of seller and buyer regarding delivery, transport, insurance and customs clearance in international sales contracts. Current version is Incoterms 2020 (11 terms: EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU, DDP).
View expertise →International payment instrument whereby a bank (issuing bank) irrevocably undertakes to pay the beneficiary (exporter) upon presentation of documents complying with stipulated conditions. Governed by ICC Uniform Customs and Practice (UCP 600). The L/C secures both seller (payment guarantee) and buyer (payment against conforming documents).
View expertise →Customs regime allowing goods to be imported with suspension of customs duties for processing, then re-exporting the finished products. In Switzerland, inward processing is governed by art. 12-15 CA and requires FOCBS authorization. It is particularly advantageous for companies importing raw materials to manufacture products for export.
View expertise →Restrictive measures adopted by states or international organizations (UN, EU, SECO) against countries, entities or persons for foreign policy or security reasons. In Switzerland, sanctions are implemented by SECO based on the Embargo Act (EmbA). They may include asset freezes, travel bans and trade restrictions.
View expertise →International goods classification nomenclature developed by the World Customs Organization (WCO). The HS is used by over 200 countries and covers more than 98% of world trade. It comprises approximately 5,300 commodity groups identified by a 6-digit code. Countries add additional digits for national purposes (8 digits in Switzerland via Tares).
View expertise →Federal court of first instance sitting in St. Gallen, competent for appeals against decisions of federal authorities, notably FOCBS in customs matters. The FAC rules on tariff classification disputes, origin of goods, customs value and administrative sanctions. Its judgments can be appealed to the Federal Supreme Court.
View expertise →Any person who, on a professional basis, accepts, holds on deposit or assists in investing or transferring assets belonging to third parties (art. 2 para. 3 AMLA). Lawyers are considered financial intermediaries when they carry out certain activities (asset management, company formation, real estate transactions for third parties). They must then join an SRO.
View expertise →Contractual stipulation whereby parties agree to submit any future dispute arising from the contract to arbitration rather than state courts. The clause must specify the number of arbitrators, seat of arbitration, language of proceedings and applicable rules (ICC, LCIA, SCAI). Under Swiss law, the arbitration clause is governed by art. 178 PILA for international arbitration.
View expertise →Basis for calculating ad valorem customs duties, determined according to the WTO Agreement on Customs Valuation rules. The primary method is the transaction value (price actually paid or payable), adjusted for transport costs, insurance and certain royalties. In Switzerland, customs value is defined in art. 19-22 of the Customs Ordinance (CO).
View expertise →Customs document certifying the preferential origin of goods under a free trade agreement. Issued by customs authorities of the exporting country (FOCBS in Switzerland), it allows the importer to benefit from reduced or zero customs duties. Required for shipments exceeding CHF 11,200 (except for approved exporters who can issue an origin declaration on invoice).
View expertise →Intergovernmental body established in 1989 by the G7, responsible for setting international standards on combating money laundering and terrorist financing. FATF issues 40 Recommendations that constitute the global standard. Switzerland is a FATF member and undergoes periodic mutual evaluations (last evaluation: 2016, next planned for 2027).
View expertise →New Federal Act on Data Protection (SR 235.1), entered into force on September 1, 2023. The nFADP modernizes the Swiss data protection framework and brings it closer to the European GDPR. Key innovations: privacy by design, impact assessment, breach notification obligation, enhanced criminal sanctions (fine up to CHF 250,000 for responsible individuals).
Intergovernmental organization comprising Switzerland, Norway, Iceland and Liechtenstein. EFTA collectively negotiates free trade agreements with third countries (33 agreements covering 43 partners in 2026). It is the main vehicle for Swiss trade policy outside the bilateral relationship with the EU.
View expertise →Unforeseeable, irresistible event external to the parties that makes performance of a contractual obligation impossible. Under Swiss law (art. 119 CO), force majeure releases the debtor from their obligation. In international contracts, the force majeure clause must precisely define covered events, notification obligations and consequences (suspension, termination).
View expertise →National legal system chosen by the parties to govern their international contract. In the absence of choice, the applicable law is determined by conflict of laws rules (PILA in Switzerland, Rome I Regulation in the EU). The choice of applicable law is fundamental as it determines contract interpretation, validity conditions and remedies for breach.
View expertise →World business organization based in Paris, publishing rules and standards for international trade (Incoterms, UCP for documentary credits, ICC Arbitration Rules). The ICC International Court of Arbitration is the most widely used arbitration institution in the world for international commercial disputes.
View expertise →Person within a company or financial intermediary responsible for ensuring compliance with regulatory obligations, particularly in anti-money laundering matters. The Compliance Officer must have functional independence, direct access to management and sufficient resources. Their role includes training, monitoring, internal investigations and reporting to authorities.
View expertise →Goods, software and technology that can be used for both civilian and military purposes or may contribute to the proliferation of weapons of mass destruction. In Switzerland, export of dual-use goods requires SECO authorization (Goods Control Act, GCA, SR 946.202). The controlled goods list is aligned with international regimes (Wassenaar, MTCR, NSG, Australia Group).
View expertise →Customs union and free trade area comprising Argentina, Brazil, Paraguay and Uruguay (founding members), with Bolivia as an acceding member. MERCOSUR is negotiating a free trade agreement with EFTA (including Switzerland) and with the EU. For Swiss companies, MERCOSUR represents a market of over 270 million consumers.
View expertise →Legal institution of Anglo-Saxon origin whereby a person (settlor) transfers assets to a trustee who administers them for the benefit of designated beneficiaries. Switzerland recognizes foreign trusts since ratification of the 1985 Hague Convention (entered into force in 2007). Trusts are subject to specific AMLA obligations regarding party identification.
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