WORLD TRADE
ORGANIZATIONG/STR/N/8/CHE
25 June 2002
(02-3495)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Updating Notification Pursuant to Article XVII:4(a)
of the GATT 1994 and Paragraph 1 of the Understanding on
the Interpretation of Article XVII
SWITZERLAND
The following communication, dated 18 June 2002, has been received from the Permanent
Mission of Switzerland.
_______________
1. Enumeration of state trading enterprises
1.1 Swiss Alcohol Boar d;  Federal Department of Finance.
1.2 Federal Office of Agriculture;  Federal Department of the Public Economy.
2. Reason and purpose for introducing and ma intaining state trading enterprises
The state trading enterprises were established a nd are maintained in furtherance of the general
objectives of Swiss policy with respect to public hea lth, agriculture and supplies.  They engage in the
import, marketing and, if necessary, production of the products concerned.
2.1 Alcohol
The Alcohol Legislation, which is  concerned with the manufacture, rectification and import of
spirits and ethanol, was established in Switzerland for public health reasons.
It is based on Article 105 (formerly Article 32 bis) of the Federal Constitution, which gives the
Federation the sole right to legislate in this field. Pursuant to that constitutional basis, the Federal
Assembly promulgated the Federal Law on Alcohol of  21 June 1932.  This legislation aims at reducing
the production and consumption of spirits.
The Swiss Alcohol Board has responsibility for implementing that law.
2.2 Bread flour
The exclusive right of the Confederation to import bread flour was instituted to ensure the
security of its supply, and to protect the domestic milling industry. It was based on Article 23, first
indent of the Federal Law of 20 March 1959 on the national wheat supply. The Federal Office forAgriculture had responsibility for its implementation. The Federal Law has been abolished by 30
th
June 2001.G/STR/N/8/CHE
Page 2
3. Function of the state trading enterprises
3.1 Alcohol
The private sector is allowed to import ethanol and spirits containing not more than 80 per cent
by volume without restriction and without any permit.   The taxes, fixed by the Federal Council, have to
be paid on imported goods as well as on the domestic production.
For control reasons, the Swiss Confederation, th rough alcosuisse, a profit centre of the Alcohol
Board, is entitled to import ethanol whose alcohol content exceeds 80 per cent by volume.  However,
imports by the private sector are possible subject  to prior authorization by the Alcohol Board.
Inside the country, ethanol and spirits are not pr oduced by the Alcohol Board itself, but by the
private sector which, for control reasons, has been granted a concession (industrial and professionalproducers, farmers, small producers).
Industrial distilleries and spirits producers are allowed to market their products directly subject
to payment of the taxes.  This trade is subject to authorization.
Ethanol is bought and sold by alcosuisse at the market price of the various qualities imported or
produced in Switzerland.  The prices for ethanol sold  by alcosuisse are fixed by the Federal Council.
Ethanol intended for consumption purposes is subject to a tax.
3.2 Bread flour
The Confederation had the exclusive right to import bread flour. According to Article 23 of
the Law on the national wheat supply (Wheat Law), that supply was to be used only in troubled times,
when the supply of domestically produced flour was jeopardized, or in case of war.
By 30 June 2001 the Wheat Law was abolished.  Since 1 July 2001, bread flour may be
imported without any quantitative restrictions or obligations for import permits upon payment of thenotified MFN-duty rate.
4. Imports, exports and domestic production
See Annex.
5. Reasons why no foreign trade has taken place in the products concerned
5.1 Alcohol
As the Alcohol Legislation is established for public health reasons, the commercial activities
of the Alcohol Board are concentrated on the domestic market.  Therefore the quantity exported by
the Alcohol Board is not important (see Table II, exports).
6. Additional information
6.1 Bread flour
The Wheat Law has been abolished by 30 June 2001.  The state monopoly has been abolished
together with the introduction of the new wheat policy, e.g. liberalization of the domestic bread wheat
market.G/STR/N/8/CHE
Page 3ANNEX
TABLE I
Swiss Alcohol Board; Federal Office of Agriculture
STATISTICAL INFORMATION,  IMPORTS, Year 2000-20011
Description of
product(s)
(including HS
number(s))Total quantity
importedQuantity imported by
state trading
enterpriseAverage import price Average
representative
domestic sales priceMark-up National production
1234567
Undenatured ethyl
alcohol of an
alcoholic strength by
volume of 80%
volume or higher
2207.10001’862 hl
245'227 hl21’862 hl
245'227 hl110.98 USD / hl
49.65 USD / hl104.09 USD / hl
115.92 USD / hl103’906 hl
108’238 hl
(not produced by the
Swiss Alcohol
Board)
Ethyl alcohol,
denatured or intended
for denaturing
2207.2000219’560 hl
38'090 hl219’560 hl
38'090 hl44.83 USD / hl
46.88 USD /  hl54.70 USD / hl
63.62 USD / hl0
0
Bread flour
1101.0029
(01.01. - 30.06.2001)311 t
497 t0
045.94 CHF /100 kg
39.46 CHF / 100 kg65 CHF / 100 kg
125.0 CHF / 100 kg393’624 t
188’358 t
Durum wheat meal1103.1119
(01.01. - 30.06.2001)139 t
4.5 t0
0119.51 CHF / 100 kg
66 CHF / 100 kg125 CHF / 100 kg
65 CHF / 100 kg80’410 t
40’784 t
                                                     
1 1st figure: year 2000 (including updated data in respect to Switzerland’s last notification, in annex of G/STR/N/6 and 7/CHE); 2nd figure: year 2001.
2 Important differences of quantities exposed between the two years mostly due to new customs regulations which resulted in a sh ift of tariff lines (between 2207.1000
and 2207.2000).G/STR/N/8/CHE
Page 4 TABLE II
Swiss Alcohol Board
Federal Office of Agriculture
STATISTICAL INFORMATION, EXPORTS, Year 2000 - 2001
Description of
product(s)
(including HS
number(s))Total quantity
exportedQuantity exported by
state trading
enterpriseAverage procurement
priceAverage
representative
Domestic sales priceAverage export price National production
1234567
Undenatured ethyl
alcohol of an
alcoholic strength by
volume of 80%
volume or higher
2207.1000203 hl
207 hl-
-110.98 USD / hl
49.65 USD / hl104.09 USD / hl
115.92 USD / hl1200.29 USD / hl
1177.88 USD / hl103'936 hl
108'238 hl
Ethyl alcohol,
denatured or intended
for denaturing
2207.2000858 hl
329 hl34 hl
10.5 hl44.83 USD / hl
46.88 USD /  hl54.70 USD / hl
63.62 USD / hl358.20 USD / hl
192.84 USD / hl-
-
Bread flour
1101.0029
(01.01 - 30.06.2001)38.5 t
7 t0
0139.68 CHF /100 kg
125.00 CHF / 100 kg139.68 CHF / 100 kg
125.00 CHF / 100 kg139.68 CHF / 100 kg
105.09 CHF / 100 kg393'624 t
188’355 t
Durum wheat meal
1103.1119
(01.01. - 30.06.2001)104 t
57 t0
0236.32CHF / 100 kg
65.00CHF / 100 kg236.32 CHF / 100 kg
125.00 CHF / 100 kg65 CHF  / 100 kg
233.83 CHF / 100 kg80’410 t
40’784 tG/STR/N/8/CHE
Page 5TABLE III
Swiss Alcohol Board
Federal Office of Agriculture
STATISTICAL INFORMATION, DOMEST IC ACTIVITIES, Year 2000 - 2001
Description of product(s)
(including HS number(s))Domestic purchases by
state trading enterpriseNational production Domestic sales by
state trading enterpriseNational consumption
12345
Undenatured ethyl alcohol of
an alcoholic strength by
volume of 80% volume or
higher
2207.1000103’936 hl
108’238 hl103’936 hl
108’238 hl11’587 hl
10’940 hl11’587  hl
10’940 hl
Ethyl alcohol, denatured or
intended for denaturing
(imported by the Alcohol
Board)
2207.20000
00
0383’365 hl
378’748 hl383’366  hl
378’748 hl
Bread flour
1101.0029
(01.01. - 30.06 2001)0 t
0 t393’624 t
188’355 t0 t
0 t523’125 t
188’355 t
Durum wheat meal1103.1119
(01.01. - 30.06 2001)0 t
0 t80’410 t
40’784 t0 t
0 t78’048 t
40’784 t
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