The Swiss Federal Council on June 24 decided to open consultation proceedings on the agreement between the EU and the Swiss Confederation on the waiving of checks and formalities in goods transport and on customs security measures. The agreement is designed to prevent new barriers to trade with the EU and replaces and supplements the existing agreement on goods controls of 1990. The agreement, which was signed on June 25, will apply provisionally from July 1, 2009.
For security reasons the EU will introduce a provision from July 1, 2009, for the movement of goods with non-EU Member States under which imports and exports will be subject to a prior notification requirement (24-hour rule). For Switzerland as a third country, this regulation would have a considerable impact on procedures concerning the flow of goods with EU Member States, Switzerland's most important trade partners.
The agreement between Switzerland and the EU provides for a waiver of the prior notification requirement in the transfer of goods between Switzerland and the EU even after the introduction of this new regulation. The equivalence of the respective security standards will be mutually recognised. This ensures smooth trade flows between Switzerland and the EU.
At the same time, goods traffic between Switzerland and non-EU Member States will be subject to the new EU security regulations (concerning prior notification and risk analysis). The EU has introduced the status of Authorised Economic Operator (AEO) which eases customs security regulations for the accredited company when trading with non-member countries. According to the Swiss Federal Council, Switzerland will adopt this practice and the respective AEO certificates will be mutually recognised.
The European Commission has established a transitional arrangement in the form of the Regulation of April 2, 2009, on the obligation to provide electronic entry and exit summary declarations which is valid until December 31, 2010. At that point Switzerland will also introduce the prior notification requirement concerning the transfer of goods with non-EU countries from January 1, 2011.
The Federal Assembly is to debate the matter in the second half of the year, but is to apply the agreement from July 1, 2009, on a provisional basis to ensure the smooth and uninterrupted flow of goods.
The agreement also defines a procedure which regulates adjustments to future legal developments. It makes provision for Swiss experts to be involved in the preparatory phase of community law in the respective EU working groups. Switzerland and the EU must therefore apply the respective legal developments simultaneously. The agreement therefore serves this purpose as a step to introducing cohesive regulation.
According to the Federal Council, should Switzerland decide not to adopt a legal
development, as a result of which the equivalence of the customs security measures
is no longer guaranteed, the EU may take appropriate compensatory measures.
If both parties agree to this, the matter may be taken to a court of arbitration
which will rule on the proportionality of the compensatory measures taken.
The consultation will last until October 5, 2009. Parliament will then vote on whether or not to approve the agreement. The agreement is subject to an optional referendum.
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