Processed agricultural products
The customs duties levied on imports of processed agricultural products into Switzerland are intended to compensate for the price disadvantage faced by the domestic food industry. This price compensation mechanism is provided for in the Federal Act on the Importation of Agricultural Products (SR 632.111.72 (available in German only)).

Price compensation on imports of processed agricultural products
The aim of the Federal Act on the Import of Processed Agricultural Products (SR 632.111.72 (available in German only)) is to compensate for the raw materials price disadvantage faced by the Swiss food industry when importing processed agricultural products, such as chocolate, sponge cakes and baby food. To achieve this, import duties (industrial protection element and variable components) are levied on imports for this purpose. The variable components reflect the price differences between domestic and foreign markets for agricultural raw materials, thereby raising the price of the raw materials contained in imported processed agricultural products to the domestic price level. Customs tariffs for processed agricultural products are determined mathematically based on the reference prices for the raw materials concerned. Export duties levied under the old ‘Chocolate Act’ (Federal Act on the Import and Export of Processed Agricultural Products) were lifted with effect from 1 January 2019.
The Federal Act on the Import of Processed Agricultural Products also implements the treaty conditions of Protocol 2 to the free trade agreement between Switzerland and the EU (SR 0.632.401.2 (available in German only)). This governs the price compensation mechanism in trade with the EU. Revised in connection with the second round of agreements, Bilateral Agreements II, Protocol 2 takes into account the difference between Swiss prices and lower raw materials prices in the EU (i.e. net price compensation) rather than the difference between Swiss prices and even lower prices on the global market.
Further information
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Contact
Foreign Economic Affairs Directorate
Special Foreign Economic Service / International Movement of Goods
Holzikofenweg 36
CH - 3003 Bern