(Last updated: 2 Jul 2010)

Business etiquette

Business tips

Business practices:

• Give your business card to the receptionist/secretary on arrival at an appointment. Exchange cards with your contacts at the first meeting. Include all titles and qualifications on your business card.
• Shake hands when arriving and leaving meetings. The Swiss are very reserved, so don’t be offended when your smile is not returned on the first meeting.
• The Swiss are formal and serious in business. French and Italian Swiss may engage in small talk but German Swiss tend to get straight to business.
• The Swiss value direct, frank language and they speak their minds. Vague responses are viewed as suspicious rather than courteous.
• Address business associates by their title (eg. Dr, Professor) and surname. Mr is ‘Herr’ in German, ‘Signore’ in Italian and ‘Monsieur’ in French. Ms is ‘Frau’ in German, ‘Signora’ in Italian, and ‘Madame’ in French. Don’t use first names.
• Interrupting speakers is considered rude. Hand gestures are also frowned upon.
• Arrange appointments in writing at least three weeks in advance, or four to five days ahead by telephone. Don’t visit during July/August when most people take leave.
• Be punctual. Being late to business or social functions is considered offensive.
• Agendas are rigidly followed and meetings are rarely interrupted.

Negotiation strategies:

• The Swiss are deal-focussed. They negotiate based on the perceived merits of the deal and don’t feel the need to develop a close personal relationship (although this may develop during discussions). Expect to get down to business after a few minutes.
• Make your initial quotes realistic rather than adopt the ‘high-low' tactic. The Swiss can react negatively to haggling. By all means, build a small margin into your opening bid to cover unexpected developments but avoid over-inflating the quote.
• Swiss negotiators are thorough in their preparation and they’ll stick to their guns when confronted with pressure tactics.
• They respond best to comprehensive presentations supported by plentiful facts. History and background information is valued above fancy visuals. References and testimonials are very useful.

Doing business over a meal:

• Generally, the Swiss prefer to separate their professional and private lives. Business associates are rarely invited home but if you are, bring the host flowers.
• Business lunches and dinners are common, but business breakfasts are not. Lunches are usually informal while dinner is the time to impress clients. Toasting is a formal process. After your host has proposed a toast, look directly at him/her and respond (eg. 'To your health' is an appropriate toast). Clink glasses with everyone at the table.

General:

• Swiss business society is conservative: a dark-coloured suit and a tie for men, and conservative suit or dress for women is appropriate for business meetings or meals. You’ll be judged on your appearance so even if an event is labelled ‘informal’, dress well.
• Exchanging business gifts is not common in Switzerland. In fact, some companies discourage it. If you do present a gift, do it personally and discreetly, and attach your business card. If you receive a gift, don’t open it in front of the giver. Send a thank you note or call them personally.
• For a special gift (to celebrate closing a deal), an Australian hand-crafted work is appropriate. Don’t give chocolates.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Swiss customs duties are generally 'specific' rather than ad valorem. The Swiss Customs Tariff uses the Harmonised System (HS) for the classification of goods.

Duties are levied per 100 kg gross weight unless some alternative unit of calculation is specified. Packaging materials are included in weight calculation.

Preferential tariff rates are accorded to European Union countries in return for similar benefits enjoyed by Switzerland.

Transit goods are exempt from duty if accompanied by appropriate paperwork. As a classic transit territory, Switzerland insists on exact documentary detail and it is often preferable to engage the services of a customs broker or forwarding agent to handle formalities. The latter applies also to the handling of temporary import permits, which are required for goods to be displayed at trade fairs, etc.

Customs reductions exist for developing countries, EU-countries, EU-partner countries. Certificate of origin is required.

Certain pharmaceutical ingredients are customs free. A Monopoly Fee applies for tobacco, alcohol and oil - paid on a Franken/per Litre basis (this is not a tax).

For further information on Swiss Customs contact the Federal Office of External Economic Affairs.

For further information on inspection and export documentation in Australia contact: Australian Quarantine and Inspection Service - food, animal and plant products and Meat & Livestock Australia - for the red meat industry only.

Non-tariff barriers

Import restrictions

Export formalities often differ widely from 'standard' practice in neighbouring countries. In recent years Swiss agricultural policy has been brought into line with World Trade Organisation (WTO) requirements. Non-tariff barriers have been largely transformed into tariffs and support measures/subsidies have been progressively reduced.

Imports are in many cases subject to quantitative restrictions. In these cases an import licence is required which will be granted only to importers resident in Switzerland. Specific import regulations apply to products under monopoly control, eg. medicines.

Quota amounts are subject to annual review. Quotas are imposed on imports of textile goods/apparel but this measure is largely restricted to goods from developing countries.

Exchange control is the responsibility of the Central Bank and is administered by authorised banks.

Labelling, marking and packaging

Outer containers should bear the consignee's mark and port mark and be numbered (to accord with packing list) unless the contents can be otherwise readily identified. Generally, goods must be marked or labelled to show the manufacturer's name, the content, the quantity in metric units and the country of origin.

Other special markings include:

• the net weight of goods
• the minimum shelf life of foodstuffs
• a list of foodstuff ingredients in order of prominence
• certain textile products must show raw material content

Labels must be in one of the three Swiss languages; German, French or Italian. However, it is advisable to include all three languages. The following information must be shown on all food labels:

• country of origin
• weight
• date of production
• sell by date (use by date)

Technical standards

The Swiss Standards Association (SNV) publicise industrial standards, compliance with which may be specified by Swiss customers. SNV is a member of ISO. Increasingly suppliers are required to deliver in accordance with ISO 9000 service development series. Similarly, exporters to Switzerland are often required to supply to EN 29000 (European Quality Management Standards). Such international norms may not be enforceable under Swiss Law but can be invaluable marketing tools in quality-conscious Switzerland.

Standards include:

• Electrical goods, which can be obtained from the Swiss Electrotechnical Association
• Medicines

Packaging

Goods should be securely packed, having due regard to the nature of the goods, means of transport and likely climatic conditions during transit and delivery. Packaging requirements are largely dictated by individual importers. Companies are advised to discuss detailed packaging and labelling requirements with their Swiss importer. Swiss packaging is generally recyclable and a system of symbols helps the consumer sort their waste. Glass bottles are frequently preferred for certain goods.

Special certficates

Fresh carcass meat, offal and livestock require sanitary certificates issued by the approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service, Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.

Foodstuffs for animals of animal origin require certification by the approved authority in the country of origin, indicating the treatment used to destroy salmonella.

Fruit and plants require phytosanitary certificates issued by the approved authority in the country of origin.

A certificate of age, authenticated by an approved authority in the country of origin, may be required for alcoholic beverages.

Methods of quoting and payment

Methods of payment follow normal commercial practice and quotes must be in Swiss Franc.

Documentary requirements

Commercial invoice

No prescribed form and a minimum of two copies is required. The invoice must include:

• the name and address of both the buyer and seller
• the method of packing
• marks and numbers
• the number of containers
• a description of the merchandise (including HS description)
• the net and gross weight
• the FOB value (Incoterms 1990)
• freight
• insurance
• other charges

Pro-forma invoice

May occasionally be requested by the importer. A minimum of two copies is required.

Bill of lading/Airway bill

No special requirements. To Order bills acceptable.

Packing list

Not compulsory, but facilitates clearance.

Certificate of origin

Required for certain specified items.

Public health requirements

Specific requirements should be checked with the importer.

Livestock (other than horses, dogs and cats), foods, animal products, plants and plant products are subject to detailed regulations and controls. Imports must be accompanied by special certificates (see 'Special certificates').

Imports of drugs and pharmaceuticals are strictly controlled.

Law restricts insecticides and other potentially dangerous chemical substances for general sale. The substances have to be approved and registered with Swiss Government agencies after testing to determine whether the substances are safe for normal trading.

Insurance

Normal commercial practice.

Weights and measures

The metric system.

Taxation

Switzerland and Australia maintain an agreement for the avoidance of double taxation in terms of income taxes, as well as an agreement relating to air services.

Switzerland has one of the lowest rates of taxation and it is through this facility rather than via massive investment incentives that it aims to attract business.

Types of tax:

• VAT (Warenumsatzsteuer) is applicable to all goods/services entering the market - either as imports or as locally produced goods/locally offered services. The current rate is 7.5 per cent but there is a specially reduced rate of two per cent for foodstuffs as well as for medicines, printed materials and a few other special items.
• Excise duties are levied on a small range of items such as alcohol and tobacco.
• An environmental tax may be levied on imports where recycling costs are likely to be incurred, eg. cars and consumer electronics.

Further information available from the federal government, the Federal Office for Economic Development, and the State Secretariat for Economic Affairs. All websites are available in English.