At a glance: trade sanctions in Switzerland

Trade sanctions

What restrictions apply in relation to the trade of goods, technology and services?

In Switzerland, trade in war material and military equipment has long been subject to a strict state control. If international sanctions relate only to war material and military equipment, Switzerland does not enact specific ordinances since the export of these goods can be prohibited pursuant to the Water Material Act (WMA) and the Goods Control Act (GCA).

The following are deemed to be war materials in accordance with article 5(1) and (2) WMA:

• weapons, weapons systems, munitions and military explosives; and
• equipment that has been specifically conceived or modified for use in combat or for the conduct of combat and that is not as a general rule used for civilian purposes; individual components and assembly packages, which may also be partially processed, provided it is discernible that such components cannot be used in the same form for civilian purposes.

Dual-use goods are defined as goods that may be used both for civilian and military purposes (article 3(b) GCA).

Trade restrictions will, typically, include the prohibition of the sale or purchase, supply, export and transit of certain listed goods, technologies or software. The targeted goods may for instance be luxury goods, dual-use goods, goods intended for military purposes or for internal repression as well as certain goods used in the oil, gas, petrochemical or nuclear industry.

Do any exemptions apply to the general trade restrictions?

The import, export and transit of war materiel require a licence from the Swiss Confederation (article 17(1) WMA). However, according to article 17(4) WMA, no licence is required by those who:

• import war materiel intended for use by the Swiss Confederation;
• bring firearms, their components or accessories, or their munitions or munitions components into Swiss territory under the legislation on weapons; and
• import explosives, pyrotechnic devices or propellant powder.

With regard to the dual-use goods, specific military goods and related technology, no general exemption is provided in the GCA.

Have the authorities in your jurisdiction imposed any trade sanctions against dealing with any particular individuals or entities?

Swiss authorities have not imposed any trade sanctions against dealing with any particular individual or entity outside of the individuals and entities listed in the Annexes to the ordinances listed above.

In what circumstances may the competent sanctions authorities in your jurisdiction issue a licence to trade in goods, technology and products that are subject to restrictions?

A licence is granted by the State Secretariat for Economic Affairs (SECO) if the trade does not contravene public international law and is not contrary to the principles of Swiss foreign policy and its international obligations. In considering whether a licence should be issued, the SECO takes into account peacekeeping, international security and regional stability, as well as the human rights’ situation in the recipient country.

With regard to war material, the WMA provides for a dual licence system. The manufacture of, trade in or brokering of war material for recipients abroad requires a licence, which ensures that the planned activity is not contrary to Switzerland’s national interests. Conversely, a specific licence is required for the import, export or transit of war material, brokering and trade in war material for recipients abroad.

What is the application process for a licence? What is the typical timeline for a licence to be granted?

Licences are granted by the SECO. Since 1 October 2014 all applications (requests or preliminary enquiries) relating to dual-use goods, war materials as well as special military goods are recorded, processed and administered on Elic, an electronic licensing system managed by the SECO.

The timeline for a licence to be granted by the SECO varies for each case and depends on the complexity of the matter. In simple cases, a licence may be granted within two or three days. However, in complex cases, it could take several months for the licence to be granted since the SECO will carry out some research and consult other departments of the Federal Administration (eg, the FDFA or the Federal Department of Finance) before granting the licence.

To what extent is it possible to engage with the competent sanctions authorities to discuss licence applications or queries on trade sanctions compliance?

The licencing process is conducted through Elic. This platform provides a helpdesk that can be reached either by telephone or email and with which it is possible to engage in discussions on licence applications or queries.

Law stated date

Give the date on which the above content is accurate.

15 February 2022