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Bern backs away from duty-free wine proposal

The federal government has backed off a proposal that would have allowed cross-border shoppers to bring up to 20 litres of duty-free wine a day into Switzerland, ten times the current rate.

Bern backs away from duty-free wine proposal
Heads up, cross-border shoppers: new rules for customs duties and taxes kick in on July 1st. Photo: Dani Simmonds

The finance department said on Tuesday that it has instead agreed to increase the amount to five from two litres a day, a compromise that aims to respond partly to concerns raised by domestic wine producers already struggling to deal with cheaper imports.

But the amount of meat you can bring over the border without charge into Switzerland has been dramatically cut back in the revised duty plan for cross-border shopping, set to take effect on July 1st.

The government said the goal of the changes is to simplify the collection of duties, which are not expected to generate more revenue than the existing regime.

Last summer, the Federal Customs Administration proposed boosting the amount of duty-free wine you could legally import to reduce the administrative workload and to improve the traffic flow at border entry points.

That sparked an angry reaction from Swiss vintners and politicians from the canton of Valais, the country’s largest wine producer.

Law-makers bowed to the concerns.

A tax of 60 cents a litre currently applied on wine over the duty-free limit up to 20 litres will jump to two francs ($2.25) a litre.

However, beyond 20 litres the tariff will drop to two francs from three francs a litre.

The daily duty-free limit for spirits (beverages with more than 18 percent alcohol, up from the current 15 percent) will remain unchanged at one litre a day.

The tax on amounts above that, which currently varies according to the product, will be a uniform 15 francs ($17) a litre — something to consider if you are thinking of bringing in a few flagons of cognac.

But cross-border supermarket shoppers will face value-added taxes (VAT) on daily purchases totalling more than 300 francs ($338), a ceiling that will include tobacco and alcohol as of July 1st, unlike now.

A limit of one kilogram of “meat and meat products” will apply before duties amounting to 17 francs a kilogram kick in.

Currently, the duty-free limit for meat is just half a kilogram, but this rises to 3.5 kilograms for salted, dried and smoked meats, which leaves open the possibility of label changing and other avoidance schemes.

The government said that the application of duties will apply to products that gain protection for farm policy or health reasons.

Butter and cream, oil, animal fats and margarine are all subject to levies above a certain amount.

The maximum number of duty-free cigarettes allowed to be imported daily is 250, with a 25-centime duty on amounts higher than that.

Merchandise that travellers bring into Switzerland for their own needs or for presents will be exempt from duty up to a value of 300 francs.

Cross-border shopping in neighbouring European countries by Swiss residents has become a booming activity because of the high value of the franc against the euro.

While Switzerland is a member of the passport-free Shengen zone in Europe, Swiss border guards still check visitors for merchandise, which can lead to traffic jams at busy entry points into the country.

The government said the new regulations are designed to make it easier to clear customs.

In the "medium term", it said, travellers will be able to declare purchases electronically with the aid of a smart phone or tablet before they arrive at the border.

The technology will allow people to know precisely what duties or sales tax they are required to pay, although the government did not set a date when this will introduced.

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WINE

What is Switzerland’s ‘one franc vineyards’ scheme – and is it legit?

When news broke of vineyards being offered in the southwest of Switzerland for one franc, many asked if it was too good to be true. Here's what you need to know about the scheme (and how much a vineyard will actually cost you).

What is Switzerland's 'one franc vineyards' scheme - and is it legit?

Earlier in Spring, news broke of a new scheme where Swiss vineyards were available for just one franc. 

As with similar stories offering one franc plots of land or houses, the news spread far and wide – which of course was the point – while some eventually became disappointed. 

READ MORE: Gambarogno: The latest Swiss village to sell houses for one franc

While it’s likely to cost you a good deal more than one franc, if owning a Swiss vineyard (or at least part of it) is on your bucket list, you now have an opportunity to do so. 

Why are Swiss vineyards going cheap?

With nearly 5,000 hectares of vineyards and 60 different grape varieties, Valais is Switzerland’s largest wine-growing region.

Unfortunately, 20 percent of the canton’s vines are abandoned and municipalities must uproot them because they can’t find people willing to cultivate them.

A case in point is the community of Savièse, nestled in a picturesque Alpine valley. About 120 plots — four to five hectares — of  its vineyards were abandoned by their owners and therefore not harvested last year, as the commune can’t find people to do the work.

This is a serious case of neglect because “when a vine is not pruned, there is a period of one year to uproot it. Otherwise, there is a risk of spreading disease”, according to Savièse’s mayor, Sylvain Dumoulin.

“There are some vines where we need to do this now, and I fear the number will increase in the future”, he added.

How much does a plot cost?

In order to protect its winemaking traditions in general and abandoned plots in particular, the municipality has launched a new vines-saving project which includes a “stock exchange” of sorts for the sale and purchase of abandoned parcels.

READ MORE: EXPLAINED: How to drink wine like a Swiss

Dumoulin didn’t reveal the cost of a plot of vineyard, as it depends on its location, condition and other factors.

Unfortunately, while you may have seen articles reporting that parcels are being sold for “a symbolic one franc”, this is more than likely a marketing ploy to attract attention than a realistic price.

Savièse’s vineyards. Screenshot, Savièse.ch

“The main long-term objective is to encourage the grouping of plots and thus the rationalisation of the exploitation of these parcels”, Dumoulin told The Local.

He added that currently the project is “exclusively accessible for people who already own vineyards. But from July it will be open to anyone with an interest in purchasing vineyard areas”.

From then on, “anyone can download the application to find plots of vines for sale and to make their owner a price proposal”. 

The app, called “Vignoble Savièse” can be purchased in Apple or Google stores.

One example of such a gimmick was the Ticino town of Gambarogno, located on the shores of Lake Maggiore, which offered houses for one franc.

‘Impossible’: Why Switzerland’s one franc homes are too good to be true

As The Local reported, “the news – along with pictures of the Ticino countryside and the lake itself – spread across the globe, with people inside and outside of Switzerland letting themselves dream”. 

However, the “rustic houses with the view of the lake” turned out to be nothing more than ruins, with no roofs, windows, electricity or running water, situated in remote locations — about an hour’s walk from the nearest village. 

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