The uniquely Swiss “ad pondus” customs duty

Switzerland is the only member of the World Trade Organization (WTO) that levies customs duties for industrial goods according to weight rather than value. This method for calculating customs duties is applied for historical reasons. No political efforts are currently being made to align the system for calculating customs duties with those used in other WTO member countries.

Customs legislation is reserved to the Federation (Article 133 of the Swiss Federal Constitution, SR 101). Federal competence has existed since 1848. Customs duties are calculated according to gross weight (Article 2(1) of the Swiss Customs Duties Act, SR 632.10), irrespective of the value of the goods. This results in lower duties for high-value, light goods, and higher duties for low-value, heavy goods. By using this method for calculating customs duties, Switzerland sets itself apart from other WTO members, which calculate customs duties for industrial goods according to the value of the goods. “Ad valorem” duty changes in line with price fluctuations, such as those currently underway; thus Switzerland’s “ad pondus” duty is relatively stable compared to the ad valorem duty applied by neighbouring countries.

Switzerland’s specific method for calculating customs duty has arisen over time: Switzerland was better able to cushion against price fluctuations after the two world wars than surrounding countries were, and thus decided to retain a static basis for calculating customs duty, such as weight. Until into the 20th century, customs duties were calculated according to weight also in neighbouring countries. No political efforts are currently being made to align the system for calculating customs duties with those used in other WTO member countries.

Literature: Arpagaus, Remo, Zollrecht: unter Einschluss der völkerrechtlichen Grundlagen im Rahmen der WTO, der WCO, der UNECE, der EFTA und der Abkommen mit der EU [Customs Law: including international law foundations in the WTO, the WCO, the UNECE, EFTA and the agreements with the EU], 2nd edition, Basel 2007; Cottier, Thomas/Herren, David, in: Kocher, Martin/Clavadetscher, Diego (eds.), Zollgesetz (ZG) [Swiss Customs Act], Bern 2009.

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