I. Tobacco Taxation

¹ The Confederation levies a tax on manufactured tobacco ... ² And on materials that are used in the same way as tobacco (substitute products).

² The terms "manufactured tobacco and substitute products" used in this Act are defined in the Tobacco Taxation Order of December 15, 1969. ³ .

II. Authorities

As regards the charges on manufactured tobacco (tobacco tax, customs duty, value added tax), the Directorate General of Customs shall adopt all the instructions and take all decisions which are not reserved Expressly to another authority. ¹ It shall be entitled to give the houses listed in the register of manufacturers, importers and dealers of raw materials, instructions on the indications, rationales and measures necessary for the collection and reimbursement of the Royalties, and for control purposes.

III. Applicable law

With the exception of special provisions of this Law and the ordinances based on this Law, the provisions governing customs duties and special taxes on the collection of which the performance of the customs requirements may give rise are Applicable, by analogy, to tax on tobacco.

I. Purpose of Tax

¹ Are subject to tax:

A.

Manufactured tobacco manufactured industrially in Switzerland and ready for consumption, as well as imported manufactured tobacco;

B. ¹

...

C. ²

Substitute products.

² ... ³

³ Manufactured tobacco products which, until consumption, do not undergo any further industrial manufacturing processes, are deemed to be ready for consumption.

⁴ "Switzerland" is deemed to be the customs territory within the meaning of Art. 3, para. 1, of the Customs Act of 18 March 2005 (LD) ⁴ . ⁵

II. Tax Exemption

Are exempt from tax:

A. ¹

Goods allowed duty free under s. 8 LD ² ;

B. ³

...

C.

Manufactured tobacco not intended for consumption;

D. ⁴

Manufactured tobacco and preparations for the reduction of asthma, if they are registered as medicinal products.

III. Assureciation ¹

Are subject to tax:

A.

For tobacco products manufactured in Switzerland: manufacturers of the consumer-ready product;

B. ²

For imported manufactured tobacco: the debtor of the customs debt.

IV. Tax Succession

¹ The fiscal successor is subrogated to the duties and tax rights arising under another of this Act.

² Are deemed to be tax successors:

A.

The heirs to the death of a taxable person or a fiscal successor. The heir is exempt from the payment to the extent that he proves that the tax payable exceeds his or her share of the estate, including the cash advances;

B.

The partners indefinitely liable or their heirs after the dissolution of a commercial company without legal personality;

C.

The corporation that resumes, with the assets and liabilities, the assets or business of another corporation.

³ If several tax successors are taken into account, each of them must personally fulfil the duties of this Act and may personally exercise the rights arising out of that Act. Each fiscal successor releases the others within the limits of its payment; its rights of appeal are governed by the existing law relationship between the tax successors.

V. Joint and several liability for tax

¹ Those responsible are jointly and severally liable with the taxable person or successor:

A.

For tax owing by a legal person or a commercial company without a legal personality which is dissolved: the persons responsible for the liquidation, even in the bankruptcy or the agreement, up to the product of the Liquidation;

B.

For tax owing by a corporation that transfers its registered office abroad without liquidation: the organs of that corporation, up to the net capital of that person.

² The responsibility of the persons designated in para. 1 is extinguished if they establish that they did everything that could be expected of them to determine and execute the tax claim.

I. Start of coverage

¹ The tax is due:

A.

For manufactured tobacco manufactured in Switzerland, as soon as they are permanently packed for delivery to the consumer;

B. ¹

For imported manufactured tobacco, in accordance with the provisions applicable to the birth of the customs debt;

C. ²

For manufactured tobacco placed in approved tax warehouses, at the time they leave or are used in the warehouse.

² Where manufactured tobacco manufactured in Switzerland, not permanently packed for the purpose of handing over to the consumer, is delivered to persons or houses not registered in the register provided for in Art. 13 or leave the manufacturer's business for any other destination, the tax is due from that fact by the manufacturer as soon as the goods leave the company; the applicable rate is that which strikes the product manufactured, ready for consumption, the most Imposed.

II. Compute Base

¹ The tax is fixed:

A.

For cigarettes, cigars and cigarillos, per part and per cent of the retail price;

B.

For fine-cut tobacco, per kilogram and per cent of the retail price;

C.

For smoking tobacco other than fine-cut tobacco and other manufactured tobacco, and for chewing tobacco and snuff, per cent of the retail price. ¹

² Where the retail price contributes to the determination of the rate of tax, the rate is fixed, for sets of sets and special packagings, based on the price of the most common packaging for retail sale. The terms "assortment packagings" and "special packagings" are defined by the order of December 15, 1969, governing the taxation of tobacco ² .

³ The price printed by the manufacturer or importer on the packagings for retail sale cannot be increased at the time of sale. ³

III. Tax Calculation (Tax Rates)

¹ The tax on manufactured tobacco is calculated on the basis of the tariffs set out in Schedules I to IV. ¹

² With a view to the co-financing of the contributions of the Confederation to the old-age and survivors' insurance, the invalidity insurance and the supplementary benefits to that insurance and to the adjustment to the tax rates in force in the European Community, the Federal Council may:

A.

Increase by 80 % the tax rates on cigarettes applicable to the entry into force of the March 21, 2003 amendment ² Of this Act;

B.

Increase by 300 % the tax rates on cigars and cigarillos applicable to the entry into force of the amendment of this Act of December 19, 2008;

C.

Increase by 80 % the tax rates on fine-cut tobacco applicable to the entry into force of the December 19, 2008 amendment to this Act;

D.

Increase by 100 % the tax rates on tobacco smoke other than fine-cut tobacco and other manufactured tobacco, as well as chewing tobacco and snuff, applicable to the entry into force of the December 19, 2008 amendment of the Present law. ³

³ In the event of an increase in rates, the Federal Council may take measures, in particular to prevent the effectiveness of the tax increase being delayed. In particular, until the entry into force of the tax increase, it may oblige manufacturers and importers to limit the production and import to sales made in a comparable period of the previous year, taking into account The evolution of the application. ⁴

I. Basic provisions

1. Register of Manufacturers, Importers and Merchants of Raw Materials

¹ The Customs Branch maintains a registry:

A.

Manufacturers of manufactured tobacco;

B.

Importers of manufactured tobacco for resale;

C.

Importers and dealers of raw, Swiss or imported materials.

² The person who, in Switzerland, manufactures industrially or imports for the resale of manufactured tobacco; the person who imports raw materials or operates in Switzerland the trade in raw materials must be registered in the relevant register. Swiss or imported.

³ Registration is subject to the following conditions:

A.

Manufacturers and importers of manufactured tobacco ... must have their domicile in Switzerland or a principal place of business registered in Switzerland, file a setback in accordance with Art. 14 and provide security rights under s. 21;

B.

Importers and dealers of raw materials must have their domicile in Switzerland or a principal place of business registered in Switzerland and file a setback in accordance with Art. 14.

⁴ Any changes related to the corporate name, the personal home, the corporate headquarters or the business activity must be reported to the Customs Branch. Homes that drop out of business, their homes or business offices in Switzerland will be removed from the register.

⁵ The term "raw materials" is defined in the December 15, 1969 order for the taxation of tobacco ¹ .

2. Reward for manufacturers importing and selling raw materials

¹ Must be engaged by a reverse charge filed with the Customs Branch:

A.

Manufacturers of manufactured tobacco:

To carry out in their own business or to remit only to undertakings registered in the register the raw materials imported or acquired in Switzerland and manufactured tobacco, not yet ready for consumption, which they have Manufactured or acquired from indigenous production;

B.

Importers and dealers of raw materials for the industrial manufacture of manufactured tobacco ... ¹ :

The return of raw materials only to businesses registered in the register;

C.

Manufacturers of manufactured tobacco, importers of manufactured tobacco for resale, and dealers and importers of raw materials:

To comply with the trade requirements set out in this Act and in the December 15, 1969 order for the taxation of tobacco ² .

² Control numbers are assigned to persons subject to the obligations arising from the reverse.

3. Control measures

¹ Manufacturers of manufactured tobacco, operators of approved tax warehouses, as well as importers and dealers of raw materials must maintain complete control, also mentioning stocks and changes in stocks, control of which The elements are determined by the Customs Branch. ¹ They must retain this control, supporting documents, business papers and documents for ten years, and must, upon request, submit them to the Customs Branch. They are required to provide the latter with information on all facts that may be relevant to the performance of this Act. In addition, the Directorate-General for Customs has the right to have an impromptu check, at all times, by its organs, factories and workshops, the deposits of goods and other commercial premises.

² The use or remission of raw materials for purposes other than manufacturing manufactured tobacco is subject to authorization by the Customs Branch. In addition, customs duties will be collected after the fact on imported raw material duty free.

³ The destruction of raw materials as well as manufactured tobacco not yet imposed is subject to authorization by the Directorate General of Customs.

4. Trade Requirements

¹ Manufactured tobacco-ready tobacco products manufactured in Switzerland can only leave the factory in packagings for retail sale. The import of manufactured tobacco is permitted only in packagings for retail sale. Such packagings shall bear the following particulars:

A.

The retail price in Swiss currency;

B.

The number of the reverse or the name of the manufacturer in Switzerland or the importer;

C.

In addition, for cut tobacco, roll tobacco, chewing tobacco, snuff and cigar trimmings: the weight of the contents. ¹

^1bis The indications referred to in para. 1, let. A and b are not required on packagings for the retail sale of manufactured tobacco for export under customs supervision or for placement in an approved tax warehouse. ²

² Only packagings for retail sale hereafter are permitted for the following manufactured tobacco products, ready for consumption:

A.

Cigars and cigarettes: up to 100 pieces, with the exception of assortment packages;

B.

Fine-cut tobacco: content of up to 250 grams;

C.

Cut tobacco, other than fine cut tobacco: content of up to 1000 gr.

³ ... ³

⁴ For the purposes of this Act, the Order of December 15, 1969 regulating the taxation of tobacco ⁴ Provides that manufacturers and dealers of manufactured tobacco may be subject to additional obligations.

II. Determination and Payment of Tax

1. Rates for cigars and cigarettes ¹

¹ The tax rate applicable to the types of cigars and cigarettes manufactured in Switzerland shall be fixed in advance by the Directorate General of Customs on the basis of reports submitted by the manufacturer in accordance with the provisions of the order of 15 December 1969 regulating tobacco taxation ² .

² On request, the rate of tax is also fixed in accordance with para. 1 for the kinds of cigars and cigarettes that an importer imports regularly.

2. Amount ¹

¹ The tax on manufactured tobacco manufactured in Switzerland or placed on consumption at the exit of an approved tax warehouse is determined on the basis of the tax declaration that the manufacturer or operator of the approved tax warehouse must present Monthly to the Customs Branch. ²

² The tax return is binding on the tax return; it is, subject to the outcome of the formal review, the basis for determining tax in each case.

³ The tax on imported manufactured tobacco is fixed by the customs offices on the basis of the customs declarations which must be presented to them. The form of the customs declaration is governed by Art. 28 LD ³ . ⁴

3. Eligibility ¹

¹ The tax is payable at the birth of the tax claim. For taxable persons who have provided security in the sense of s. 21, para. 1, or 26 C , the payment period runs until the last day of the second month following the day of the due date. The Federal Customs Administration (Customs Administration) may exceptionally extend the time limit for payment. ²

² The tax on imports into postal and tourist traffic, for which the importer does not submit a written declaration (s. 18, para. 3), as well as the tax for which there is no security right within the meaning of s. 21, is paid according to the provisions governing customs duties. ³

II ^Bis . Interest

¹ In the event of a delay in the payment of the tax, a moratorium is due from its liability.

² The customs administration must have a remunerative interest from the time it collected an amount erroneously or did not refund an amount incorrectly.

³ The Federal Council may provide for exceptions to the perception of the moratorium.

⁴ The Federal Department of Finance sets interest rates.

III. Security interests and tax pledges

¹ Manufacturers and importers of manufactured tobacco registered in the register provided for in Art. 13 must provide security in the forms provided for in s. 76 LD ¹ The security rights cover all claims of the customs administration vis-à-vis the manufacturer and the importer, resulting from or arising from the imposition of the tax on tobacco, customs duty and value added tax. ² Security rights may be released only when the taxable person has met all of his obligations. The amount of security rights is fixed by the Directorate General of Customs.

² The Confederation has a legal right to pledge on manufactured tobacco ... for which the royalties are due (tax on tobacco tax). The requirements governing the customs pledge shall apply mutatis mutandis.

IV. Application for supplement, ex officio refund

¹ If, as a result of a customs administration error ¹ , a tax owing has not been liquidated or has been liquidated too low, or a refund has been set too high, the difference is claimed, unless it is prescribed under s. 23.

² If the official control of the determination of tax or business controls reveals that a tax has been improperly collected, the overpaid amount is refunded ex officio.

Prescription

¹ The tax claim shall be prescribed for five years from the end of the calendar year in which it arose. ¹

² The limitation period is not short and, if it has commenced to run, it is suspended for the duration of a claim, appeal or revision proceeding concerning the tax liability or claim.

³ The limitation period shall be interrupted whenever a person who is liable for payment recognizes the tax claim and whenever an official act to recover the debt is brought to the knowledge of a person who is liable for payment. Each time a new limitation period begins to run.

⁴ Suspension and suspension shall have effect in respect of all persons who are required to pay.

⁵ The tax claim is prescribed in all cases by 15 years from the end of the calendar year in which it arose. ²

VI. Repayment and remission

1. Reimburse ¹

¹ The tax on manufactured tobacco manufactured in Switzerland or imported is refunded to the taxable person: ²

A. ³

For manufactured tobacco which, under customs supervision and through customs offices designated by the customs administration, is exported to the foreign customs territory or sent to a Swiss duty free shop at the Meaning of s. 17, para. 1 ^Bis , LD ⁴ ;

B.

For manufactured tobacco that is still in the manufacturer or importer, or that the manufacturer, importer or operator of an approved tax warehouse withdraws from the market, provided that, within two years of payment They are presented to the Directorate General of Customs in the intact packaging for retail sale and, under the control of the latter, rendered unusable or subject to work to be reemployed in the manufacturing process;

C.

For manufactured tobacco which has been clearly destroyed or rendered unusable by force majeure or by accident in the manufacturer's or importer's undertaking. ⁵

² The time limit for submitting the claims and the procedure are set out in the December 15, 1969 order for the taxation of tobacco ⁶ .

³ The tax refunded is again due to the re-importation of exported manufactured tobacco.

2. Discount

¹ It is remitted to the taxable person in respect of manufactured tobacco manufactured in Switzerland and imported:

A.

For manufactured tobacco which has been clearly destroyed or rendered unusable by force majeure or by accident in an approved tax warehouse;

B.

For manufactured tobacco for which there is a right to the remission of customs duties within the meaning of Art. 86, para. 1, let. A, LD ² .

² The Federal Council regulates the modalities.

I. Manufacturing, Processing, Management

¹ Manufacturers and importers of manufactured tobacco products offering the required security are authorized to manufacture, process and manage manufactured tobacco in suspension of tax in an approved tax warehouse.

² Management includes the reception, storage and preparation for the shipment.

II. Authorization

¹ Can be authorized as registered tax warehouses:

A.

Manufacturing units;

B.

Clear deposits.

² The Federal Council lays down the conditions governing the creation and operation of approved tax warehouses; the customs administration grants the authorisation.

³ The authorization is withdrawn in the following cases:

A.

The conditions for granting the authorisation are no longer fulfilled;

B.

The licensee of the approved tax warehouse does not comply with the undertakings to which it has entered into force under this Act.

III. Monitoring

Registered tax warehouses are subject to the supervision of the customs administration.

IV. Security Interests

Registered tax warehouse operators provide security in the sense of s. 21, para. 1, for tax and other royalties.

V. Controls

Registered tax warehouse operators are subject to the control measures listed in s. 15.

VI. Transport

¹ For imported manufactured tobacco, not imposed, transported from the border to an approved tax warehouse, importers assume the obligations under this Act; they must provide security for tax and other charges.

² When acting as shippers, licensed tax warehouse operators assume the obligations under this Act for non-taxed manufactured tobacco shipped from one approved tax warehouse to another or, for tobacco Manufactured for export, from a tax bonded warehouse at the border; they must provide security for tax and other charges.

³ Security rights shall cease to have effect in the following cases:

A.

Manufactured tobacco products arrived at the approved tax warehouse and their entry was duly recorded;

B.

The export of manufactured tobacco has been certified by customs.

⁴ The operator of the approved tax warehouse shall advertise to the customs administration each shipment of non-taxed manufactured tobacco.

I. Fixing of production prices

The Federal Council shall fix, after hearing the relevant circles, the production prices according to the varieties and qualities, as well as the supplements resulting from the costs of receiving the tobacco and its fermentation.

II. Support by manufacturers of manufactured tobacco; indigenous tobacco funds and tobacco prevention funds ¹

¹ The Order of December 15, 1969 regulating the taxation of tobacco ² Statue on the transfer of indigenous tobacco to manufacturers of manufactured tobacco.

² The Federal Council may:

A.

Require manufacturers of manufactured tobacco to take care of, to an appropriate extent, indigenous tobacco in relation to the imported tobacco they treat. This compulsory assumption is, however, limited to harvesting a surface area of 1000 ha;

B. ³

Bind the manufacturers and importers of cigarettes and fine-cut tobacco to the fund created to participate in the financing of indigenous tobacco 0.13 percentime per cigarette or 1 fr. 73 per kilogram of fine-cut tobacco;

C. ⁴ Require manufacturers and importers of cigarettes and fine-cut tobacco to remit a tax of the same amount in a smoking prevention fund. ⁵

³ The funding fund referred to in para. 2, let. B, is managed by the Société coopérative pour l' achat du tabac Indigenous and placed under the supervision of the Directorate General of Customs. ⁶

⁴ The smoking prevention fund referred to in paragraph 2 (c) is managed by a prevention organisation and is under the supervision of the Federal Office of Public Health, in collaboration with the Federal Office of Sport. ⁷

III. Collaboration between cantons and agencies

The Federal Council can call upon the cooperation of the cantons and economic bodies. Any person who is required to cooperate is subject, in respect of professional secrecy, to the provisions applicable to federal employees.

¹ If the tax has been refunded or wrongly remitted, the customs administration claims the refund.

² The right to restitution shall be limited to five years from the time when the customs administration has been informed of this right, but no later than ten years from the date of the birth of the right.

³ The limitation period is interrupted by any official act claiming restitution; it is suspended until the person subject to tax can be prosecuted in Switzerland.

I. Complaint

¹ The decisions of the Directorate General of Customs may be challenged, by way of complaint, within 30 days of the notification.

² The claim must be made in writing to the Customs Branch; it must contain specific findings and state the facts used to motivate the claim. The means of proof must be indicated in the complaint and, to the extent possible, attached thereto.

³ Where a complaint is admissible as to form, the Directorate General of Customs shall review its decision without being bound by the conclusions presented.

⁴ The claim procedure shall be continued notwithstanding the withdrawal of the complaint if there is evidence that the contested decision is not in conformity with the law.

⁵ The decision on complaint must be reasoned and indicate the legal remedies.

II. Customs use

Decisions made by customs offices and by the Customs Arrondissement may be subject to an administrative remedy under s. 116 LD ² .

I. Offences

1. ...

2. Submitting tax

¹ A fine of not more than 30 000 francs shall be imposed or, if the result is a higher amount, of the quintuple not exceeding the tax exempt or of the unlawful advantage, wilfully or negligently, for obtaining or procuring a third party. Benefit:

A.

Exempt the Confederation from taxes on manufactured tobacco;

B.

Provide to persons or houses not registered in or out of the register for any other destination of manufactured tobacco manufactured in the country, not permanently packaged for surrender to the consumer;

C.

Improperly obtains a refund or remission of tax, or another unlawful tax benefit.

² Art. 14 of the Federal Act of 22 March 1974 on Administrative Criminal Law (DPA) ² Is reserved.

³ In the event of aggravating circumstances, the maximum amount of the fine shall be increased by half. A custodial sentence of up to one year may also be imposed.

3. Deperil of tax

¹ A fine of up to 20,000 francs is imposed on any person who, intentionally or negligently, endangers the regular enforcement of the tax provisions on manufactured tobacco:

A.

Failing to meet the obligation to advertise as a manufacturer, importer, operator of a licensed or merchant tax warehouse, file a tax return or a customs declaration, provide reports, provide information And to allow access to books, records and accounting records;

B.

By providing incorrect information or by identifying important facts in a notice, tax return or customs declaration, in a report, or in a claim for refund or remission of tax, or by submitting exhibits Incorrect supporting evidence in support of important facts;

C.

Providing inaccurate information as a taxpayer or third party to provide information;

D.

Contravening the obligation to keep books, records and supporting documents on a regular basis;

E.

Hindering, preventing or making impossible the regular execution of a review of books, other official control or a local inspection;

F.

By furnishing raw materials for the industrial manufacture of manufactured tobacco to persons or houses not registered in the Register;

G.

By assigning or using raw materials for purposes other than manufacturing manufactured tobacco, without authorization from the Customs Branch;

H.

By selling manufactured tobacco above the price indicated on the retail package.

² Art. 14 to 16 CCA ² Are reserved.

³ In the event of aggravating circumstances, the maximum amount of the fine shall be increased by half. A custodial sentence of up to one year may also be imposed.

⁴ Where it is an offence within the meaning of para. 1, let. E, criminal prosecution under s. 285 of the Penal Code ³ Is reserved.

4. Tax Recel

A person who acquires, receives a gift or pledge under his or her care, conceals, conceals, passes or helps to dispose of manufactured tobacco while he knows or must assume that the tax has been subtracted, will be liable to the penalty applicable to the offender.

5. Attempt

Attempting to commit a tax offence is punishable.

5 ^Bis . Aggravating circumstances

The following are considered aggravating circumstances:

A.

Hiring one or more persons to commit a tax offence;

B.

Committing tax offences by business or by habit.

6. Order-in-Order Preservation

¹ The person who contravenes the rules governing trade, the person who, as a manufacturer, importer or merchant of raw material entered in the register, fails to announce a change in the reason for trade, personal domicile, head office Or commercial activity,

A person who otherwise contravenes a requirement of this Act relating to the taxation of manufactured tobacco, an order of performance, a general instruction issued pursuant to any of those provisions, or to a Being served under threat of the penalty provided for in this Article,

Be punished with a fine of up to 5,000 francs.

² The person who acted negligently is also punishable.

6 ^Bis . Offences in a business

If the prescribed amount of the fine does not exceed 100,000 francs and the investigation of persons punishable under s. 6 DPA ² Implies measures of instruction out of proportion to the penalty incurred, the authority may waive the prosecution of those persons and order the undertaking (art. 7 CCA) for the payment of the fine.

7. Offence Contest

If an offence is a combination of tax evasion, tax evasion or tax evasion and a customs offence, the penalty is the one for the most serious offence; it can be increased by Appropriate manner.

II. Applicable law

¹ Offences shall be prosecuted and tried in accordance with this Act and the DPA ² .

² The authority with jurisdiction to prosecute and judge is the customs administration.

II ^Bis . Issue of criminal action

The requirement of criminal action within the meaning of s. 11, para. 2, DPA ² Applies to all tax offences.

III. Measures

¹ In serious cases of subtracting or endangerment of tax or tax fraud committed in an operation, the Directorate General of Customs may order, for a period of up to five years, the cancellation of the operation of the register Manufacturers, importers or dealers of raw materials, or refuse to register in this register.

² In serious cases of unlawful obtaining of an eluded contribution or refund, the Directorate General of Customs may deprive the author and the undertaking which he represents for a period of up to five years.

IV. Amount of fine

The amount of the fine is vested in the federal fund.

I. Tariff of Duties on Tobacco

The tariff of duty on tobacco is set out in Chapter 24 of the General Tariff annexed to the Customs Tariff Act of October 9, 1986. ² .

II. Repeal of previous legal provisions

The following are repealed at the time of entry into force of this Act:

A.

Chapter IV of Part Two and the Schedule "Tariff of Duty on Tobacco" of the Federal Act of December 20, 1946 on Old Age and Survivor Insurance ¹ ;

B.

The c. IV, let. B, of the Federal Act of December 19, 1963, amending the Act on the Old Age and Survivors Insurance ² ,

III. ...

IV. Entry into force and enforcement

The Federal Council shall fix the date of entry into force. It lays down the necessary implementing provisions.