The Vietnamese Trade Office in Switzerland has assessed that Switzerland's removal of import tariffs on industrial goods will create equal conditions for Vietnamese products compared to all other countries. Some Vietnamese textile, footwear products will benefit more than competitors from many other markets.

According to the Vietnamese Trade Office in Switzerland, from January 1st, 2024, industrial goods will officially be exempt from import duties regardless of origin country. The Trade Office said that in Switzerland, industrial goods include intermediate inputs for production such as capital goods, raw materials, semi-finished products, machinery and equipment, salt and industrial salt, consumer goods such as vehicles of all kinds, household appliances, clothing, footwear... These products fall under HS code chapters 25-97 (excluding some products under chapters 35 and 38 which are also considered agricultural products).

Some Vietnamese textile, footwear products will benefit more than competitors from many other markets when Switzerland removes import tariffs on industrial goods.

Along with removing import tariffs on industrial goods, Switzerland will also make some changes to simplify customs tariff schedules and origin determination regulations. For many products, the need to sub-divide HS codes by different tariff rates is no longer necessary. From January 1st, 2024, the number of Switzerland's HS tariff lines will be reduced from 9114 to 7511.

"Removing import tariffs on industrial goods does not change the customs clearance process. Importers still have to declare imports and pay other fees and charges incurred when importing, including VAT," the Trade Office noted.

Assessing the impact of this policy on Vietnamese goods, citing Swiss Customs data, the Vietnamese Trade Office in Switzerland said that on average industrial goods also account for about 90-93% of the country's annual import turnover from Vietnam. Many of these items enjoy GSP preferences from Switzerland.

"Removing import tariffs on industrial goods in Switzerland will put Vietnamese products on an equal footing with all other countries, without advantages (compared to non-GSP beneficiaries) or disadvantages in tariffs," the Trade Office concludes, believing that for some products such as textiles, footwear, Vietnamese goods will benefit more than competitors from many other markets.