News

Re-insurance options for goods of foreign origin with value added in Switzerland

To further meet its goal of advancing Switzerland's economic interests, which along with production location with various levels of value added also includes research and development and service location, SERV is instituting a more flexible policy on the minimum component of value added in Switzerland to goods manufactured abroad. So long as coverage is available from a re-insurer abroad, SERV may now grant coverage for exports of foreign origin or with a subcontractor involvement in excess of 70%, provided the foreign added-value risk component does not exceed 60% after deduction of the re-insured portion (for example, an export to which a Swiss exporter adds 20% in value would require foreign re-insurance of 50% of the total). In such cases we ask exporters to give reasons for such a large foreign component and why the export should qualify for SERV coverage. To be fair to exporters seeking coverage for exports with 30% Swiss added value, SERV will levy a 10% premium surcharge (for more, go to the "Information Origin of Goods" dated May 1, 2007).