Freight between the UK and Switzerland | Rates – Transit time – Duties and taxes – Advice

How to calculate duties & taxes when importing from UK to Switzerland?

Calculating customs duties and taxes for your shipment from the UK to Switzerland may seem complex, but it doesn't have to be. To get an accurate figure, there are a number of key details you need at your fingertips. This includes the country of origin (where your goods were manufactured or produced), the Harmonized System (HS) code (a standardized coding of names and numbers for product classification), the customs value (essentially the total value of the goods you're shipping), and the applicable tariff rate which varies according to the product type. Other taxes and levies may also apply, depending on the specifics of the goods you're transporting.

To kick off this process, you'll first have to identify the country where your goods were produced- in this case, the UK. This forms the foundation of your customs calculation, setting the stage for the other elements we'll unravel in the following steps.

Step 1 - Identify the Country of Origin

Knowing your goods' country of origin holds great importance while importing from the UK to Switzerland. Why is that, you ask? Here go the five reasons:

1. Trade Treaties: At its core, customs calculus hinges on trade deals. UK and Switzerland are subject to agreements that prescribe custom duties. Understand your deal, save big on taxes.
2. HS Code Nexus: Origin tells a story. It sets the stage for the HS Code determination. Remember, HS Codes shape your custom duties.
3. Marking Requirements: Certain goods need origin marking. Make sure you check the requirements before shipping.
4. Import Regulations: Switzerland has rules for imports from particular countries. Neglecting these could invite needless trouble.
5. Duty Preferences: Some goods from specific countries avail reduced or zero duties. This country-of-origin pawn can be a gamechanger.

Each trade agreement between the UK and Switzerland carries its own set of quirks. For instance, trade agreements like the Mutual Recognition Agreement (MRA) can ease conformity assessments, affecting your duties. So dive into these agreements, unravel the benefits and drawbacks that relate to your shipment specifics.

And remember, import restrictions aren't uncommon. Goods like agricultural products or weapons might face strict rules. So look before you leap, browses through lists of restrictions so you're prepared and aware. A little homework upfront can translate into smooth shipping later.

Step 2 - Find the HS Code of your product

The Harmonized System (HS) Code is a standardized numerical method of classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and to gather statistics.

The easiest way to find your product's HS Code is typically to ask your supplier. They're well-acquainted with the goods they export and the accompanying regulations.

However, if this isn't an option, you can discover your HS Code using a straightforward process. Firstly, utilize an HS lookup tool. One such tool is found in the Harmonized Tariff Schedule. Once there, simply input the name of your product into the search bar. Then, take a look at the 'Heading/Subheading' column where your HS Code is located.

A word of caution - accuracy is critical when determining your HS Code. The implications of using an incorrect code include both shipping delays and potential fines. Always double-check to ensure you've found the correct classification.

Here's an infographic showing you how to read an HS code.

Step 3 - Calculate the Customs Value

Understanding the customs value - it's like unravelling a ball of yarn. Not always straightforward, but certainly doable! The customs value isn't just about how much your products cost, it involves more. Sure, it starts with the price of your goods, but then ropes in international shipping, and insurance costs. Put it all together and you've got your customs value, or as insiders call it, the CIF value.

For instance, if your merchandise costs $1000, your transport is $200, with an insurance of $10, your CIF value or the customs value in Switzerland would be $1210. Keep in mind, this value forms the basis for customs duties and VAT. Embrace these numbers, and turning chaos into order becomes a breeze!

Step 4 - Figure out the applicable Import Tariff

Import tariffs, also known as customs duties, are taxes imposed by a country when goods are imported. For Switzerland, its Standard International Trade Classification (SITC) tariff system is used.

To find the applicable tariff for UK products, use the UK Government's Trade Tariff Tool. Simply follow these steps:

1. Enter the HS code that was identified earlier.
2. Enter the country of origin.
3. Check the duties and taxes applied to their product.

Let's walk through an example using HS code 6203.42 (Men's woolen suits), imported from the UK. If the tariff rate displayed is 12%, and you have CIF costs ($ insurance and freight) worth $1000, the import duty will be calculated as follows:

Import Duty = CIF cost Tariff rate
= $1000 12%
= $120

This calculation gives you the import duty, which should be considered in your costing when transporting goods from the UK to Switzerland.

Step 5 - Consider other Import Duties and Taxes

When importing goods from the UK to Switzerland, it's crucial not to overlook additional import duties and taxes. For instance, beyond the standard tariff rate, excise duty may apply to certain goods such as tobacco, alcohol, or fuel. This is a specific type of tax that varies depending on the goods' nature and their country of origin.

Consider anti-dumping taxes as well, which aim to balance unfair cost advantages from countries selling goods below their market value. Let's say you're importing textiles from the UK, and the Swiss authorities determine there's a case of dumping. They could impose a hefty tax, greatly increasing your total shipping spend.

Most importantly, don't forget about Switzerland's Value Added Tax (VAT). Swiss import VAT gets calculated on the cost to import, adding together the value of the goods, duty, and cost to ship and insure. For example, if you're importing a wholesale lot of fashion accessories valued at $10,000, with a duty rate of 3% and transit insurance at $200, your calculated VAT may look like this: ($10,000 + 300 + 200) 7.7% (standard Swiss VAT rate).

Remember, these are just examples to illustrate the point, real-life figures could differ significantly. Always factor in these additional costs when planning your shipment to avoid unexpected expenses.

Step 6 - Calculate the Customs Duties

Discover how to efficiently calculate customs duties for imports from the UK to Switzerland with our easy-to-use, three-part formula.

Part 1: Add your goods' value to freight and insurance costs to obtain the Customs Value. For example, if your goods cost 5,000$ and freight and insurance amount to 650$, your customs value will be $5,650.

Part 2: Multiply the Customs Value by the duty rate (let's say it's 10%). So, $5,650 x 0.10 equals $565.

Part 3: If you have no VAT, stop here. Your total customs duty will be $565. If you do have VAT (usually 7.7%), include it. So, $5,650 (Customs Value) x 0.077 (VAT) equals an additional $434.05.

Putting it all together, your total duty with VAT would be $999.05 ($565 + $434.05).

Finally, for goods subject to both VAT and anti-dumping taxes (say, another 5%) and Excise Duty, you'll need to add those as well. Using the same Customs Value: $5,650 x 0.05 (anti-dumping) equals $282.50, and let's imagine that the Excise Duty is an additional $100. Total duty in this case would be $1,381.55 ($999.05 + $282.50 + $100).

At DocShipper, we know these calculations and regulations can get complex. That's why we offer full-service customs clearance. We ensure you won't pay more than necessary and promise a free, personalized quote in less than 24 hours. Just send us a message, and we'll handle the rest.

Bill of Lading

Shifting your goods from the UK to Switzerland can seem daunting – that's where the Bill of Lading steps in. This essential document, whether on sea or air (referred to as the AWB), certifies ownership transition from the shipper to the carrier, then to the consignee upon delivery. Picture it as your goods' 'passport', verifying its journey details and allowing hassle-free customs clearance.

An upgrade to consider is the telex (or electronic) release, allowing a seamless, paperless process, speeding up delivery times. Tangled in logistics? Remember, efficiency or lack thereof in handling the Bill of Lading can make or break your delivery timings. Shipping awareness becomes essential, just like other aspects of your business.

Packing List

Navigating UK-Switzerland shipment? You'll need a Packing List. Picture it as your parcel's 'biography' - it tells the story of what you're shipping. It is your responsibility, as the shipper, to ensure it accurately details contents, weight, and measurements. Picture this, you're shipping medical equipment from Manchester to Geneva. Customs officials in Switzerland will examine the Packing List, cross-check it against your shipment.

Any discrepancy can lead to delays or fines - not what you want, right? Whether for ocean or air freight, an accurate Packing List smooths your shipment's journey, keeping customs hiccups at bay. Remember, an accurate packing list is more than a filler, it's your shipment's golden ticket to a smooth customs clearance between UK and Switzerland.

Commercial Invoice

While you're getting your shipment from the UK to Switzerland in order, the commercial invoice becomes your best friend. Think of it as the detailed story of your goods. It includes vital elements like the shipper's and receiver's details, a thorough description of the items, HS codes, and the country of manufacture.

Now imagine this scenario: Your shipment arrives in Geneva, and the customs officer, Max, needs to assign duties. The clear, detailed story in your commercial invoice makes Max's job straightforward, expediting clearance. So, it's crucial all information aligns with your other shipping documents to avoid setbacks. Remember, your business thrives on smooth shipments!

Certificate of Origin

Understanding the Certificate of Origin (CoO) can unlock sizeable benefits, particularly when shipping between the UK and Switzerland. Think of the CoO as a passport for your goods, confirming their country of manufacture. Savvy businesses take advantage of this document to access preferential customs duty rates. Let's say you're exporting Swiss-made premium watches to the UK.

By including a CoO, you assert these watches are genuinely Swiss, potentially tapping into duty benefits. Just remember accuracy is vital; any errors can result in fines or shipment delays. Don't let paperwork trip up your shipping strategy - utilize the CoO to ensure a seamless, cost-effective customs clearance process.

Certificate of Conformity (CE standard)

Shipping goods from the UK to Switzerland? The CE marking (Conformity Européenne) is your ticket to a smooth journey. It's a maker's declaration that their product meets the standards of the European Economic Area (EEA), facilitating trade within the EEA and with countries like Switzerland that recognise these standards. It's not a quality assurance; instead, it says, 'Hey, we've checked and we fit within the EEA’s health, safety, and environmental protection legislation.'

For those familiar with the American system, think of it like a European version of UL or ETL marks. The big catch while shipping from UK? Post-Brexit, UK uses the UKCA (UK Conformity Assessed) marking. To avoid bumps, check that your products are correctly marked. Here's a handy guide: UKCA Marking Guide.