Switzerland and Italy reach an agreement on Campione d'Italia

Bern, 20.12.2019 - At its meeting on 20 December 2019, the Federal Council approved an exchange of notes between Switzerland and Italy regarding the change of the customs status of the Italian enclave of Campione d'Italia. This exchange of notes is necessary to ensure legal certainty and facilitates the transition of Campione d'Italia into the European Union's customs territory, scheduled for 1 January 2020.

The agreement is the culmination of a process initiated by the head of the Federal Department of Foreign Affairs, Ignazio Cassis, in January 2019 with the handing over of an aide-memoire to the incumbent Italian foreign minister, Enzo Moavero Milanesi. The document reiterated the interests of both countries in addressing jointly the consequences of the change in customs status of Campione d'Italia.

The exchange of notes confirmes the introduction of a local consumption tax in Campione d'Italia which is in line with Swiss VAT, thus avoiding potential distortions of competition in the surrounding border region.

The agreement also stipulates the conditions for settling the debts owed to Swiss creditors in the Italian enclave. The exchange of notes also sets out the undertaking of the two states to do their utmost to maintain, wherever possible and when requested by Italy, the provision of certain basic services by Swiss companies and public bodies.

Lastly, the agreement seals the commitment of the two countries to conclude without delay an agreement on the establishment of an office with combined national controls for the Bissone/Campione d'Italia border crossing. This agreement has been negotiated by the respective competent authorities in order to facilitate customs procedures and practices for the benefit of local businesses and citizens.

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