Switzerland has announced the abolition of customs duties on a range of products, including clothing, shoes, and various industrial goods such as capital goods, raw materials, semi-finished products and machinery from all countries. The policy change, that came into effect on January 1, 2024, is set to significantly impact the country's manufacturing and import sectors. 

The Federal Council of the Swiss government notified that the exemption from customs duties is expected to yield annual benefits exceeding CHF 860 million. This financial relief comes in the form of direct savings of CHF 490 million for companies, alongside a reduction in administrative burdens estimated at CHF 100 million. Additionally, Swiss companies are projected to experience productivity gains of around CHF 270 million. 

This strategic decision aims to bolster Switzerland's reputation as a leading business and industrial hub, easing the financial and administrative pressures on both companies and consumers. 

Data from Fibre2Fashion's market analysis tool TexPro highlights the significant scale of Switzerland's imports in these categories. In the period from January to October 2023, Switzerland imported apparel valued at $7.317 billion. This figure compares to $8.157 billion in 2022 and $8.285 billion in 2021. Similarly, the country's footwear imports in the first ten months of 2023 amounted to $1.995 billion, down from $2.324 billion in 2022 and $2.327 billion in 2021. 

Fibre2Fashion News Desk (KUL)