(art. 13, para. 5, LTab)

The following are deemed raw materials:

A.

Raw, raw tobacco;

B.

Raw tobacco that is partially or wholly removed, cut or otherwise worked for implementation;

C.

Raw or tobacco-made tobacco waste, such as ribs, broken tobacco or tobacco dust;

D.

Homogenized tobacco.

(art. 1, para. 2, LTab)

¹ Manufactured tobacco products referred to in the customs tariff under the numbers ¹ 2402.1000/9000, 2403.1100/1900, 2403.9910 and 2403.9990. ²

² In particular, cigars are considered to make ends, ends, cigarillos, feathers, toscani and virginies, of which the interior is composed in whole or in part of tobacco with or without subcape, and which are covered by natural or homogenized tobacco, to Less than such products are deemed to be cigarettes within the meaning of para. 3.

³ The following are deemed cigarettes:

A.

Cigarettes in the ordinary meaning of the trade, which are composed in whole or in part of a tobacco pudding wrapped in a material other than the raw leaf tobacco;

B.

Cigarette-like products that:

1.

Are adjusted in a straight line in the direction of length, are composed in whole or in part of a tobacco pudding and have a single or double envelope, the outer envelope being made of material other than the natural tobacco leaves, or

2.

Are made up of socks or other similar prefabricated products and which, by a simple and non-industrial operation, are introduced into a cigarette tube or wrapped in a sheet of cigarette paper.

⁴ Are deemed to be smoking tobacco:

A.

Tobacco that is cut or split in another way, spun or pressed into plates, that is likely to be smoked without further industrial processing;

B.

Cigar trimmings as well as tobacco waste packaged for retail sale that are likely to be smoked outside of s. 2 or 3.

⁵ Deemed tobacco is a fine cut tobacco for which:

A.

More than 25 % by weight of tobacco particles has a cutting width of less than 1.2 mm; or

B.

A maximum of 25 % by weight of the tobacco particles has a cutting width of less than 1.2 mm and is sold to roll the cigarettes or is intended for that purpose.

⁶ It is also deemed to be a fine-cut tobacco for pipe tobacco referred to in the tariff of customs under number 2403.1100. ³

(art. 1, para. 2, LTab)

¹ Products which are not or are only partly composed of tobacco, but which are used in the same way as tobacco or manufactured tobacco, are deemed to be substitutes, even if they are not to be switched on in order to be Consumed.

² Not deemed to be substitutes:

A.

Electronic cigarettes operating according to the evaporator principle or the spray principle, as well as their components;

B.

Tobacco addiction products registered with Swissmedic. ¹

(art. 10, para. 2, LTab)

¹ Packages containing manufactured tobacco of different kinds or of various categories of prices or trademarks are deemed to be packagings.

² Packages which, by the quantity contained or the presentation, differ from the usual packaging in the trade are deemed to be special packagings.

(art. 17 LTab)

¹ Manufacturers of manufactured tobacco (manufacturers) must report to the Customs Branch the retail selling prices of all products.

² For cigarettes and cigars, they report the average weight per 1000 pieces to the standard humidity of storage for the control of the use of raw materials.

³ The average weight:

A.

Per 1000 cigarettes includes the weight of the tobacco pudding and the weight of the envelope on the length of the tobacco pudding;

B.

Per 1000 cigars is calculated without a bill or filter.

⁴ If the retail price or the average weight of an already declared product is changed, the manufacturer must submit a new report before the tax claim is born.

⁵ For manufactured tobacco products that are exclusively sold abroad, the Customs Branch may exempt manufacturers from the obligation to report retail prices.

(art. 17 LTab)

¹ If a cigarette or a cigar makes it possible to obtain several units for consumption, each one must be considered separately for taxation.

² Where different retail prices are provided for manufactured tobacco of the same brand and packaging, the Directorate General of Customs shall fix the tax on the basis of the highest price.

³ It may require that sample-types be submitted to it.

⁴ It shall communicate in writing to the taxable persons the product code, the serial number and the tax rate that it has set.

(art. 18, para. 1 and 2, LTab)

¹ Manufacturers of manufactured tobacco and operators of registered tax warehouses (operators) must report to the Directorate General of Customs for 8 of the month manufactured tobacco which, during the previous month: ¹

A.

Have been permanently packaged for delivery to the consumer;

B. ²

Have been placed on consumption from a licensed tax warehouse, or

C.

Have been used in an approved tax warehouse.

² If the declaration does not correspond to the supporting documents, if it is not complied with in accordance with the requirements or if it contains insufficient or equivocal data, the Directorate General of Customs shall make it to the person who established it in order to That it completes it.

(art. 17, para. 1, and 18, para. 1, LTab)

¹ The Customs Branch prescribes the form of reports or declarations.

² In particular, it may order the use of an electronic method and make it dependent on a control of the system used.

(art. 18, para. 3, LTab)

The customs declaration of import shall contain the following particulars:

A.

The variety, use and packaging of raw tobacco;

B.

The trade mark and the actual weight and retail price of manufactured tobacco;

C.

The number of pieces of cigarettes and cigars.

(art. 24, para. 2, LTab)

The customs declaration of export of manufactured tobacco for which the refund of the tax is claimed must indicate the trade mark and the order number assigned by the Directorate General of Customs.

(art. 24, para. 2, LTab)

¹ The taxable person must apply for a refund of tax based on s. 24, para. 1, LTab to the Directorate General of Customs, on official form, within the following time limits:

A. ¹

Manufactured tobacco exported to the foreign customs territory or sent to an indigenous duty free shop within the meaning of Art. 17, para. 1 ^Bis , of the Customs Act of 18 March 2005 ² Under customs supervision and through customs offices designated by the customs administration: one year from taxation on export;

B.

Manufactured tobacco that is still in the manufacturer or importer or the manufacturer, importer or operator withdraws from the market: two years from the payment of the tax;

C.

Manufactured tobacco which has been clearly destroyed or rendered unusable, by force majeure or by accident: 30 days from the date of the finding of the damage.

² The Directorate General of Customs may, on an exceptional basis, also grant reimbursement to intermediaries.

³ The applicant must prove the date and amount of the payment of the tax. The rebate application must be accompanied by parts designated by the Customs Branch. In the cases referred to in para. 1, let. A, the proof of export taxation must also be provided.

⁴ The Directorate General of Customs may require the applicant to be certified by a foreign customs authority confirming the taxation on importation or in transit in that country.

(art. 25, para. 2, LTab)

¹ The remission of tax must be requested in writing by the Customs Branch.

² The request for remission must include the findings, reasons, evidence, and signature of the subject person. The Commission will attach the documents in lieu of evidence.

³ In the cases referred to in s. 25, para. 1, let. A, LTab, the request for remission must be made within 30 days of the finding of the damage.

⁴ In the cases referred to in s. 25, para. 1, let. B, LTab, the request for remission must be submitted within one year of the establishment of the taxation decision. In the case of taxation with a conditional payment, the time limit shall be one year from the clearance of the customs procedure chosen.

(art. 24, para. 2, and 25, para. 2, LTab)

¹ If the Customs Branch is eligible for a refund claim, it will refund the overpayment or the imputed tax on open claims.

² In the cases referred to in s. 24, para. 1, let. C, and 25, para. 1, LTab, refund or remission is granted only if there is no other right to the tax refund.

(art. 26 A , para. 1, let. A, and 2, LTab)

¹ Manufacturing units are units in which manufactured tobacco is manufactured, processed and managed in suspension of tax.

² Part of a manufacturing unit is the manufacturing, processing and management of manufactured tobacco products and the storage of semi-finished products and finished products.

³ The unit shall be fitted in such a way as to allow for the tracking of the input of raw materials, semi-products, manufacture, processing, management and output of manufactured tobacco.

⁴ The Customs Branch fixes the size of the unit on a case-by-case basis and the requirements to be met in order to ensure tax security.

(art. 26 A , para. 1, let. B, and 2, LTab)

¹ Tax warehouses are buildings or parts of buildings in which persons engaged in trade manage manufactured tobacco in suspension of tax.

² The unit shall be fitted in such a way as to allow for the monitoring of the entry, management and exit of manufactured tobacco.

³ The Customs Branch fixes the size of the unit on a case-by-case basis and the requirements to be met in order to ensure tax security.

(art. 26 A , para. 2, LTab)

¹ The subject person must submit an application for an authorization to operate a tax warehouse licensed to the Customs Branch.

² It must attach to the application all the supporting documents essential for the evaluation:

A.

For manufacturing units in particular:

1.

An extract from the trade register,

2.

The description of the unit with overall plan and schematic representation of the installations,

3.

Description of manufacturing or processing processes,

4.

The description of the raw materials and the products to be manufactured or processed,

5.

The designation of by-products and waste;

B.

For tax warehouses in particular:

1.

An extract from the trade register,

2.

Description of the warehouse with the overall plan,

3.

Description of the business activity.

(art. 26 A , para. 2, LTab)

¹ The Customs Branch authorizes the operation of an approved tax warehouse:

A.

The requirements referred to in s. 14 or 15 are completed;

B.

That tax security be guaranteed; and

C.

That appropriate security rights are provided for tax and other charges.

² It shall decide the application by way of decision.

³ The authorisation is not transferable.

(art. 26 A , para. 2, LTab)

¹ The licensee is required to notify the Customs Branch of any changes it intends to make to its commercial activity or to construction and facilities.

² If tax security is compromised, the Customs Branch may require changes to the project.

(art. 26 A , para. 2, LTab)

¹ If the operator wishes to waive the authorization, he or she must communicate it in writing to the Customs Branch three months in advance.

² The waiver of the authorization takes effect at the end of a month.

(art. 26 A , para. 3, LTab)

¹ Withdrawal of authorization within the meaning of s. 26 A , para. 3, LTab, takes place at the decision of the Customs Branch.

² The authority to operate a licensed tax warehouse is extinguished:

A.

By the transfer of the approved tax warehouse to third parties;

B.

By dissolution of the corporation or by the death of the operator;

C.

By the opening of a bankruptcy against the operator.

³ The tax debt is incurred when the authorization is withdrawn or extinguished.

(art. 26 A , para. 2, LTab)

The operator shall make available free of charge to the customs administration:

A.

The premises and facilities necessary for monitoring, with the necessary equipment (heating, lighting and running water);

B.

The necessary staff to support the customs administration.

(art. 26 E LTab)

¹ Operators and importers must establish an accompanying bulletin for the transportation of non-taxed manufactured tobacco.

² The accompanying bulletin must be prepared on the official Customs Branch form. The following particulars must be included:

A.

The consignor, consignee, warehouse or customs office of destination, date of shipment, continuous numbering;

B.

The means of transport used, the type of goods, the designation of the goods, the order number, the quantity (number of parts or kilograms for the goods imposed according to their mass);

C.

Location, date and signature.

³ The Directorate General of Customs may, in so far as they contain the necessary indications, authorise commercial documents instead of the accompanying bulletin.

⁴ It may prescribe specific customs documents or a specified customs procedure.

⁵ The operator acting as the shipper or the importer shall conduct the manufactured tobacco, intact, within the period referred to in s. 24, at the place indicated in the accompanying bulletin (approved tax warehouse or customs office).

(art. 26 E LTab)

¹ The procedure for the transport of non-taxed manufactured tobacco begins:

A.

For imported manufactured tobacco: at the time the customs office accepts the accompanying bulletin or commercial documents;

B.

For other manufactured tobacco: at the time they leave the approved tax warehouse and the accompanying bulletin or business documents are fully completed and signed.

² The procedure ends:

A.

For exported manufactured tobacco: at the time the customs office certifies their export in the accompanying bulletin or in the commercial documents;

B.

For other manufactured tobacco: at the time when they arrive at the approved tax warehouse, where their entry is attested in the accompanying bulletin or in the commercial documents and where they have been duly accounted for in the Accounted for material.

(art. 26 E LTab)

¹ The procedure must be completed within 10 days.

² The Directorate General of Customs may set derogations for special cases.

(art. 26 E LTab)

¹ Any irregularity related to the carriage of non-taxed manufactured tobacco must be immediately announced by the operator to the Customs Branch.

² If it finds that there is a shortage in the receipt of non-taxed manufactured tobacco, it must record it in the accompanying bulletin and record the quantity actually placed in the warehouse in the record.

³ The Customs Branch fixes the amount of the tax on the missing quantity and notifies the importer or the operator acting as the shipper.

(art. 16, para. 4, LTab)

¹ The Customs Branch monitors the wholesale and retail trade in manufactured tobacco to the extent that this monitoring is necessary to ensure the collection of customs duties and taxes.

² Wholesalers and retailers of manufactured tobacco must provide the Customs Branch with all required information and business papers.

³ The Customs Branch is authorized to have control at any time, without prior notice, of the warehouses of goods and other commercial premises.

(art. 16, para. 4, LTab)

¹ The mail-order sale of manufactured tobacco not imposed on individuals is not permitted in the customs territory.

² The Customs Branch may, upon request, grant exceptions for other manufactured tobacco products such as cigarettes and fine-cut tobacco. It lays down conditions and charges.

(art. 16, para. 4, LTab)

¹ Anyone who wants to store manufactured tobacco in a bonded warehouse must pre-advertise it in writing to the Customs Branch.

² In addition, the Customs Branch may impose this obligation to advertise to the warehouse.

(art. 16, para. 4, LTab)

¹ Any person who wishes to process or manage manufactured tobacco in an open customs warehouse must pre-announce it in writing to the Customs Branch.

² The warehoused or warehousekeeper must maintain an inventory of manufactured tobacco in an open customs warehouse. This inventory is governed by s. 184 of the Order of 1 ^Er November 2006 Customs ² In the particular case, the customs administration may require that additional indications be recorded if this is necessary for the control of the goods in storage.

(art. 16, para. 4, LTab)

¹ The treatment of manufactured tobacco is not allowed:

A.

When it creates a risk of deception; or

B.

Where it can lead to a reduction in charges or to circumvention of the legislative acts of the Confederation other than customs.

² The Directorate General of Customs may prohibit the processing of manufactured tobacco if this operation is likely to jeopardise the smooth operation of the placement under customs arrangements in Switzerland or abroad.

(art. 16, para. 4, LTab)

The indications required in accordance with Art. 16, para. 1, LTab shall be printed in legible and indelible characters directly on each retail package.

(art. 16, para. 4, LTab)

No person shall import and trade manufactured tobacco that is not in accordance with the provisions of the LTab and this order.

(art. 28, para. 1, LTab)

¹ The regional commissions tax the tobacco offered and useable (tobacco lot) on the basis of producer prices and quality.

² They are made up of the Swiss Federation of Tobacco Farmers' Associations (SwissTabac) and the Société coopérative pour l' achat du tabac Indigenous (SOTA), in agreement with the Directorate General of Customs.

³ They consist of two people representing SwissTabac and two people representing SOTA.

⁴ SwissTabac and SOTA alternately elect a president from among these people.

⁵ The chairman shall decide irrevocably when the members of the committee cannot agree on taxation.

(art. 28, para. 1, LTab)

¹ The commissions establish a receipt bulletin for each batch of tobacco.

² The bulletin contains the name of the farmer, the variety, the price and the net weight of the tobacco.

³ It is signed by the President and, upon request, submitted to the Customs Branch.

⁴ The Directorate General of Customs may send a summary of the indications for control to the competent cantons.

(art. 28, para. 1, LTab)

¹ At the end of the harvest year, SOTA sends an annual report on the financing fund to the Customs Branch. The annual report shall include the following particulars:

A.

Prices paid to farmers;

B.

Other charges for the receipt and fermentation of tobacco;

C.

The result of fermentation and the allocation of fermented tobacco to manufacturers;

D.

The profit and loss account and the balance sheet of the financing fund.

² Organizations of tobacco growers and manufacturers of manufactured tobacco containing indigenous tobacco and fermentation companies are required, at all times, to allow the Directorate General of Customs to consult their Books, supporting documents and other documents, providing complete information and authorizing access to all commercial premises, as well as premises used for the care, storage or fermentation of tobacco.

(art. 28, para. 2, let. B, LTab)

¹ Manufacturers and importers of cigarettes and fine-cut tobacco for the indigenous market pay a levy of 0.13 percentime per cigarette or 1 fr. 73 per kilogram of fine cut tobacco to the SOTA financing fund.

² The levy shall be calculated according to the quantities indicated in the tax declaration or in the customs declaration of importation, and shall be due in accordance with the requirements applicable to tobacco tax.

³ Manufacturers' prices may be determined on the basis of average prices, calculated over several years, of imported raw tobacco for use in the manufacture of cigarettes.

(art. 29 LTab)

¹ As regards the tasks delegated to them, the bodies to which they are called shall be placed under the supervision of the Directorate-General for Customs.

² The statutes and regulations governing the management of bodies must be approved by the Directorate-General for Customs and the Federal Office of Agriculture.

(art. 28, para. 2, let. C, LTab)

¹ Manufacturers and importers of cigarettes and fine-cut tobacco for the indigenous market pay a levy of 0.13 cents per cigarette or 1 fr. 73 per kilogram of fine-cut tobacco in the Tobacco Control Fund.

² The levy shall be calculated according to the quantities indicated in the tax declaration or in the customs declaration of importation, and shall be due in accordance with the requirements applicable to tobacco tax.

¹ The customs administration may use the data on manufactured tobacco imposed for statistical purposes. It meets the requirements of data protection.

² It can publish the statistics.

The collection of emoluments is governed by the ordinance of 4 April 2007 on the emoluments of the Federal Customs Administration ¹ .

(art. 20, para. 3, LTab)

¹ The Federal Department of Finance fixes the amount up to which no interest is payable.

² Upon request, the customs administration may waive the imposition of a moratorium in cases where the payment is not reasonably payable by the manufacturer.

(art. 48 LTab)

For its work, the customs administration is compensated for 2.5 % of total revenue (gross yield).

The Tobacco Taxation Order of December 15, 1969 ¹ Is repealed.

The following orders are amended as follows:

... ¹

(art. 11, para. 3, LTab)

¹ Manufactured and imported manufactured tobacco manufactured and imported before December 31, 2009 and whose retail price has been adjusted under the amendment to the LTab of December 19, 2008 are taxed on the basis of the new tax rate.

² Manufacturers and importers may place in the trade fine cut tobacco imposed under the old right until March 31, 2010.

This order shall enter into force on 1 ^Er January 2010.