Federal Act of June 21, 1932 on Alcohol (FAA) (ALKG)

The production, rectification, importation, exportation, transit, sale, and taxation of distilled beverages are governed by the present law. Except where otherwise provided, legislation concerning customs and the regulation of the trade in foodstuffs and various common goods are reserved.

For the purposes of this Act, "distilled beverage" is understood to mean ethyl alcohol in all its forms, regardless of the method of production.

Subject to the restriction provided in para. 3, alcoholic products obtained solely by fermentation, with an alcohol content not exceeding 15% by volume, or, for natural wines obtained from fresh grapes, 18% by volume, are not subject to the provisions of this Act.

Products to which alcohol has been added fall under the provisions of this Act.

An ordinance of the Federal Council will subject to this Act any other alcohol that can serve as a beverage and replace ethyl alcohol.

The right to manufacture and refine distilled beverages belongs exclusively to the Confederation.

As a general rule, the exercise of this right is granted to cooperative societies or other private enterprises.

Non-industrial production of spirits made from fruits and fruit waste, cider, perry, grapes, wine, grape marc, wine lees, gentian roots, berries, and other similar materials is permitted if these materials originate exclusively from the native harvest of the producer (local produce) or have been harvested by him in the wild within the country. However, these materials may only be distilled in domestic distilleries that benefit from a concession or on behalf of clients.

Only materials originating from the land exploited by the distiller or the client are considered as local produce.

An ordinance of the Federal Council shall specify what is meant by non-industrial production and shall designate the raw materials that can be distilled by local distillers.

The Confederation grants manufacturing and rectification licenses for distilled beverages that entail a right of supervision by the Federal Office for Customs and Border Security (FOCBS) and manufacturing licenses for specialty spirits and contract distillation that do not entail such a right of supervision.

Licenses entailing a right of supervision are granted to: a. potato, beet, and other similar material distilleries, i.e., fixed distilleries that process domestic potatoes or by-products of domestic sugar beet manufacturing; b. pip fruit distilleries, i.e., fixed or mobile distilleries that, for their own account, process domestic raw materials such as apples and pears, their derivatives, ciders and pear ciders, and the waste of these materials; c. industrial distilleries, i.e., operations that process residues from the manufacture of pressed yeast and sugar or other raw materials of domestic or foreign origin; d. rectification facilities, i.e., operations that produce high-proof alcohol, absolute alcohol, or rectify spirits; e. alcohol factories, i.e., operations that produce alcohol by chemical processes.

Licenses not entailing a right of supervision are granted to: a. specialty distilleries, i.e., fixed or mobile distilleries that process stone fruits, pip fruits other than apples and pears, their derivatives and waste, wine, waste and residues from wine production, gentian roots, berries, or other similar materials; b. contract distilleries, i.e., fixed or mobile distilleries that process, on behalf of principals and for a fee, the materials designated in Art. 3, para. 3.

The Federal Council determines the conditions under which an operation may simultaneously obtain different licenses.

Concessions will be granted to the extent justified by the economic needs of the country. They must enable the timely use of waste or residues from fruit cultivation, viticulture, and sugar beet cultivation, as well as the surplus from fruit and potato harvests, insofar as these materials cannot be rationally used elsewhere than in distillation.

Concessions for the distillation of domestic raw materials are preferably granted to enterprises located in regions where production generally exceeds the needs for food and fodder.

The duration of a concession cannot exceed ten years. A concession can be granted only if the applicant's personal qualifications, as well as the construction and technical installations, ensure rational operation. The Federal Council shall issue the necessary regulations. It may, among other things, declare the operation of a distillery incompatible with the simultaneous exercise of another profession that would hinder the supervision of the distillery or the trade of distilled beverages.

The transfer of a concession to another person or distillery is subject to authorization by the Federal Office for Customs and Monopolies (FOCM). Authorization must be granted if the distillery is transferred by inheritance and if the heir meets the necessary conditions.

Licenses are granted or renewed by the Federal Office of Customs and Border Security (FOCBS), upon request and without charge.

A record of this is made.

If the conditions of the license are not observed or if one of the reasons justifying the granting or renewal ceases to exist, the FOCBS may, after hearing the party concerned, withdraw the license before its expiration.

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Licensed distilleries are subject to the supervision of the Federal Office for Customs and Border Security (FOCBS). The FOCBS may enlist the collaboration of cantonal and municipal authorities.

The licensee must maintain records indicating the origin of the raw materials, the types and quantities of distilled beverages obtained, and their use. Furthermore, the licensee must grant agents responsible for the enforcement of this law free access to operating premises at all times, authorize them to review accounting records, and provide all necessary information.

An authorization from the FOCBS is required to acquire, install, move, replace, or modify distillation equipment and their accessories.

The Federal Council is authorized to also subject installations that can be used to produce distilled beverages and are not the subject of a concession to the control of the FOCBS. Paragraph 3 may be declared applicable to these installations.

The regime for distilleries using residues from the production of beet sugar is determined in the concession act.

As a general rule, distilleries using pome fruits are not subject to quotas. However, the Federal Council is authorized to take all necessary measures to limit distillation, provided that they do not harm the rational use of fruits.

The quota for industrial distilleries, rectification plants, and alcohol factories is determined in the concession act.

Each year, the Federal Office for Agriculture (FOAG) determines the quantity of distilled beverages it will procure to meet its needs.

Additionally, it may also procure brandy to absorb market surpluses.

Before the harvest, it announces to the distilleries holding a concession with a procurement right the quantity it will procure and the respective price. Distilleries are invited to submit their offers. When the offers exceed the announced quantity, allocation to distilleries is done on a pro rata basis.

The Federal Council sets the requirements that the distilled beverages procured by the FOAG must meet, as well as the modalities of procurement.

Distilled beverages made from pome fruit raw materials are subject to taxation in accordance with Articles 20 to 23.

The acquisition prices shall be determined by the Federal Council.

The prices for distilled spirits acquired by the FOCBS to cover its requirements shall be determined taking into account the utilization of surpluses and waste as well as the cost of production based on efficient manufacturing. Different prices may be set for distillation in bond and by the column still.

The prices for distilled spirits acquired by the FOCBS for market relief shall be determined on a tiered basis according to quantity. They must be lower than the prices determined pursuant to paragraph 2.

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The acquisition price to be paid to industrial distilleries and alcohol factories shall generally correspond to the average procurement costs of imported foreign ethanol of the same quality by the FOCBS. In doing so, proven production costs, including interest and depreciation on fixed capital, may be taken into appropriate consideration.

Rectification plants shall be paid compensation that covers the purification costs.

Quality differences may be taken into appropriate consideration when determining the acquisition price.

The right to distill specialties is not limited in terms of production quantity or the origin of raw materials.

The Federal Office for Customs and Border Security does not take responsibility for the products of specialty distilleries.

Specialty spirits made from local materials are taxed in accordance with the provisions of Articles 20 to 23.

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Licenses for operating custom distilleries are granted to mobile distilleries. They may also be granted to fixed distilleries if the mobile distilleries are insufficient, or if local circumstances or circumstances existing prior to the entry into force of this Act justify it.

Unless they benefit from one of the other licenses provided for in Art. 4, custom distilleries must not operate on their own account, but only on behalf of principals. They shall only distill, on behalf of the latter, the materials designated in Art. 14.

The brandy thus obtained must be handed over to the principal.

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The non-industrial production of fruit brandies and waste fruit brandies, cider, perry, grapes, wine, grape pomace, wine lees, gentian roots, berries, and other similar materials, originating exclusively from the indigenous harvest of the producer (home distiller) or gathered by them in the wild within the country, is only authorized in licensed domestic distilleries.

A license may be granted by the Federal Office for Food and Domestic Affairs (OFDF), for a duration of one year, to the home distiller whose harvest has been severely diminished by hail or another natural phenomenon, allowing them to distill their own products and raw materials supplied by third parties, without losing the right to the duty-free allocation provided for in Art. 16.

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They can generally only be transferred to third parties in conjunction with the agricultural operation to which they belong (distillery domain). If the domain is subdivided, the distillery can continue to operate only on the parcel where it was located before the subdivision.

The replacement of distilling equipment and accessories, modifications likely to increase their production capacity, as well as the transfer to third parties, if this transfer is not related to that of the distillery domain, can only be carried out with the authorization of the OFDF. This authorization may specify how the replacement or modification should be carried out.

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Domestic distillation is placed under the supervision of the FODF. The latter may seek the cooperation of cantonal and communal authorities.

The distiller may not make any modifications before providing the FODF with all the required information.

The distiller is only authorized to keep tax-exempt spirits originating from products harvested by him on his own land or in the wild within the country, which are necessary for his household and agricultural operation. The Federal Council shall issue regulations to ensure the effectiveness of this provision and to prevent abuse in the use of tax-exempt spirits.

The OFDF may take responsibility for the ownership of fruit brandy that is not needed for the household or agricultural operation of the distiller. Articles 10 and 11 apply by analogy.

Fruit brandy given to third parties, either free of charge or for remuneration, is subject to taxation in accordance with articles 20 to 23.

The SFPA does not cover specialty spirits produced by private distillers.

Specialty spirits provided to third parties, whether free of charge or for remuneration, are subject to taxation in accordance with Arts. 20 to 23.

Anyone wishing to obtain fruit brandies or specialty brandies can have their raw materials distilled by a custom distillery.

Producers who exclusively distill products they have grown themselves or harvested in the wild within the country are recognized as principal craft distillers if they meet the conditions set by the Federal Council in accordance with Art. 3, para. 5, for the non-industrial production of distilled beverages. However, the Federal Council may impose necessary restrictions on the admission of principal craft distillers to prevent abuse.

When special circumstances prevent the use of a custom distillery, the Federal Department of Finance (FDF) may authorize the holder of a domestic distillery to carry out distillation on behalf of a principal craft distiller or to lease the equipment to them.

The regulations concerning the supervision of craft distillers, the use and taxation of brandy apply to principal craft distillers.

Principals who do not meet the conditions of para. 2 are subject to the regulations concerning professional distillers for the authorization of distillation, control, use, and taxation of the brandy produced. Control may be simplified for principals producing small quantities of brandy.

If a principal has been penalized for a serious violation of the federal alcohol law or for a repeated offense, or engages in habitual drunkenness, the FDF may prohibit them from issuing distillation orders as provided in para. 5. Furthermore, the Federal Council may declare the right to have products distilled incompatible with the pursuit of other professions if this hinders the control of raw materials, production, and use of brandy.

The tax on specialty spirits is levied on spirits obtained by the distillation of stone fruits, pome fruits other than apples and pears, or their derivatives or waste, grapes, wine, grape marc, wine lees, gentian roots, berries, and other similar substances. These products are fully taxable when manufactured in licensed distilleries. If they have been manufactured in domestic distilleries or on behalf of principals, only the quantities sold or given away to third parties are subject to tax.

This tax is payable: a. by the holder of the distillery license (Art. 12); b. by the home distiller (Art. 18, para. 2) or by the principal (Art. 19).

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The spirits obtained in licensed distilleries are taxed based on the quantity of spirits produced.

Small operations may be taxed according to the quantity of raw materials and their presumed average yield, or on a flat-rate basis.

The spirits obtained in domestic distilleries or on behalf of principals are taxed based on the quantity sold or delivered to third parties. This taxation can also be subject to a flat rate.

The Federal Council, after consulting the interested parties, sets the tax rate. It particularly considers the tax rates applied in neighboring countries.

It favors small producers for a determined quantity of production, provided that the distilled raw materials, within the meaning of Art. 14, para. 1, originate exclusively from their own production or have been harvested by them in the wild in the country.

The tax is determined per hectoliter of pure alcohol at a temperature of 20° C.

The Federal Office for Customs and Border Security (FOCBS) may prescribe the form for declaring the quantities of alcohol produced or those that have been dispatched from tax warehouses; it may, in particular, require the use of an electronic process and subject the use of the procedure to verification.

The Federal Council regulates the taxation procedure.

Any person subject to tax must keep records, fill out the necessary forms, and make the declarations required for taxation.

The competent authorities may conduct inspections at any time and without prior notice. The operator must grant them free access to sales and storage premises, provide them with all useful information, show them the reserves of distilled beverages, and present the business records and supporting documents.

The FOCBS sets the date on which the tax is due.

Are taxed in the same manner as specialty spirits: a. products with added distilled beverages; b. natural wines obtained from fresh grapes with an alcohol content exceeding 18% by volume, fruit and berry wines, and wines made from other raw materials with an alcohol content exceeding 15% by volume, wine specialties, sweet wines, and mistelles; c. vermouths and other wines made from fresh grapes prepared with plants or aromatic substances.

The tax is reduced by 50% for: a. natural wines obtained from fresh grapes with an alcohol content of more than 18% but no more than 22% by volume, fruit and berry wines, and wines made from other raw materials with an alcohol content of more than 15% but no more than 22% by volume; b. wine specialties, sweet wines, and mistelles with an alcohol content of no more than 22% by volume; c. vermouths and other wines made from fresh grapes prepared with plants or aromatic substances, with an alcohol content of no more than 22% by volume.

The tax is increased by 300% for sweet distilled beverages with an alcohol content of less than 15% by volume, containing at least 50 grams of sugar per liter expressed as invert sugar or an equivalent sweetening, and that are marketed in the form of ready-to-drink mixtures, in bottles or other containers.

The Federal Council regulates the tax liability as well as the reimbursement or offsetting of the levied tax charges, in accordance with this law, on the materials used.

The FDFO may order that distillation apparatuses that no longer qualify for a license be modified in such a way as to prevent any misuse.

The importation of distilled beverages is subject to a tax equal to the tax imposed on specialty spirits.

Solid food products containing alcohol are taxed at the rate applicable to the alcoholic content they contain. Furthermore, the tax levied on the importation of alcoholic products intended for consumption is regulated in accordance with Art. 23 bis.

Alcohols and products containing alcohol that are unfit for consumption are not subject to tax. The Federal Council specifies: a. the cases in which denaturation must be carried out; b. the persons authorized to perform denaturation. The Federal Department of Finance and Customs (OFDF) regulates denaturation.

Any person who wishes to use undenatured and untaxed alcohol for the production of products unfit for consumption or in professional processes not intended for consumption must apply for a usage permit from the Federal Department of Finance (FDF).

The Federal Council sets the conditions required for granting the usage permit. The FDF specifies in the permit the conditions applicable to the products or processes referred to in para. 1.

The holder of a usage permit for undenatured and untaxed alcohol may: a. supply the acquired products to companies that hold the status of a tax warehouse or a usage permit, or b. employ or supply the acquired products for taxable use with a tax declaration, up to an annual quantity of 2000 liters of pure alcohol without the provision of securities.

The calculation, collection, and security of the tax levied at the border are governed by customs legislation.

The Federal Council may authorize companies that provide the necessary guarantees to produce, transport, operate, and store distilled beverages under tax suspension in a bonded warehouse.

It sets the conditions required for the granting of the authorization to operate a bonded warehouse and its utilization.

The OFDF supervises the use of distilled beverages. The competent authorities may conduct inspections at any time and without prior notice. The holder of the usage authorization must grant them free access to the sales and storage premises, provide them with all useful information, show them the stock of distilled beverages, and present them with the commercial books and supporting documents.

Anyone who exports products made with distilled beverages on which tax has been paid is entitled to a refund proportional to the quantity used. Dispatch of goods to a Swiss duty-free shop, within the meaning of Art. 17, para. 1bis, of the Customs Act of 18 March 2005, is also considered exportation.

The refund rate is calculated based on the taxes stipulated in this law and levied on the exported products. If it is not possible to determine the exact amount of these taxes, the refund will be made at the lowest rate.

The refund is made at the end of the fiscal year. During the fiscal year, the Federal Department of Finance (FDF) may pay advances.

No refund will be made on exports of quantities less than 5 kg gross weight.

The transit of alcohol and products containing alcohol is exempt from all taxes provided by this law. The provisions of customs legislation apply to ensure the rights provided for in this law.

Anyone who sells distilled beverages intended for consumption, negotiates their sale as an intermediary, or otherwise proceeds to the non-gratuitous delivery of such beverages is deemed to be engaging in trade.

The gratuitous delivery of distilled beverages for advertising purposes is also considered trade. Excluded are gifts given to a specific number of persons.

Wholesale trade is considered to be any delivery to resellers or enterprises that use distilled beverages in the production of their products.

Any other form of trade, including serving for on-premises consumption, is considered retail trade.

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The retail trade of distilled beverages is prohibited in the following forms: a. peddling; b. sales on public roads and squares unless the cantonal license provides an exception for consumption in the vicinity of hospitality and catering establishments; c. hawking; d. taking and executing collective orders; e. visits to consumers without their request for the purpose of taking orders; f. sales through publicly accessible vending machines; g. sales at prices that do not cover costs, except during the realization of goods ordered by the authority; h. sales involving gifts or other advantages intended to entice the consumer; i. distribution to children and adolescents under 18 years of age; k. free distribution of distilled beverages for advertising purposes to an indeterminate number of persons, notably in the form of sample distribution or organization of tastings.

The competent authority may grant exceptions for the delivery of distilled beverages in the following forms: a. sales on public roads and squares during events; b. sales at prices that do not cover costs in the case of commercial activity cessation or for other major reasons; c. free distribution for advertising purposes to an indeterminate number of persons, during fairs or exhibitions in which the food trade participates.

The retail trade within the boundaries of the canton is subject to a license issued by the competent cantonal authority.

Anyone who operates multiple points of sale or delivery for distilled beverages must hold a separate license for each of them.

Eligible to engage in the retail trade of distilled beverages are producers of spirits, hospitality and catering establishments, including catering services in aircraft and trains as well as on boats, wine and spirits shops, duty-free shops, pharmacies, and drugstores, as well as businesses offering a wide assortment of foodstuffs that also includes non-alcoholic beverages.

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The authority of the cantons to impose additional restrictions on retail trade required by public welfare is reserved.

The cantons charge a fee for the retail trade license, the amount of which is determined according to the type and significance of the operation.

Whoever engages in the trade of distilled beverages must grant the competent control authorities free access to the sales and storage premises, provide them with all useful information, show them the reserves, and present the business books and supporting documents.

Advertising for distilled beverages, whether in text, image, or sound, must only contain indications or representations directly related to the product and its properties.

It is prohibited to make price comparisons and to promise gifts or other benefits.

Advertising for distilled beverages is prohibited: a. on radio and television; b. in and on buildings or parts of buildings intended for public use and on their premises; c. in and on public transportation facilities and vehicles; d. on sports grounds and during sporting events; e. during events mainly attended by or organized primarily for children and adolescents; f. in businesses or establishments that sell medications or whose principal activity is safeguarding health; g. on packaging and everyday items that do not contain distilled beverages or have no relation to them.

It is prohibited to organize contests that serve as advertising for distilled beverages or that involve the acquisition or distribution of such beverages.

The OFDF encourages coordination between the cantons regarding the regulation of retail trade.

In order to reduce the consumption of spirits, the Confederation supports, through subsidies, the efforts of organizations and institutions that, on a Swiss or intercantonal level, fight against alcoholism through preventive measures. Such subsidies may be allocated notably to information and research.

The subsidies are disbursed by the Federal Office for Customs and Border Protection (FOCBP); for this purpose, an appropriate global amount is included in its budget. The FOCBP may charge a competent body with the distribution of all or part of the subsidies.

The grant of subsidies to combat alcoholism, granted by the cantons under the alcohol tithe, is reserved.

The net revenue consists of the income from taxes after the deduction of an execution allowance. The Federal Council determines the expenses arising from this Act and the necessary operating expenses covered by the execution allowance.

The net revenue is allocated 10% to the cantons; 90% remains with the Confederation.

The distribution among the cantons is based on their resident population. The figures from the most recent survey by the Federal Statistical Office on the average resident population are decisive.

The Confederation allocates its share of the net revenues to old-age, survivors, and disability insurance.

The cantons are required to use their share to combat alcoholism, drug abuse, and other addiction-inducing substances, as well as the misuse of medications, in both their causes and effects. The cantons must submit an annual report to the Federal Council regarding this use.

Every three years, the Federal Council presents a report to the Federal Assembly on the use made by the cantons of their share.

The Confederation has a statutory lien on all products subject to tax according to this law and that are manufactured or stored on Swiss territory if the payment of the tax appears to be at risk, particularly if the liable person: a. makes arrangements to abandon their domicile, registered office, or stable establishment on Swiss territory or to deregister from the Swiss commercial register, or b. is late in paying the tax.

The tax lien also applies to taxable products according to this law for which the tax claim has not yet arisen and takes precedence over all other real rights associated with the pledge.

The Federal Department of Finance exercises its lien by seizing the merchandise.

It proceeds with the seizure of the merchandise: a. by taking possession of the lien, or b. by prohibiting the possessor of the merchandise from disposing of it.

It may return the seized merchandise to the entitled person upon the provision of securities.

The tax lien may be enforced: a. when the secured tax claim is enforceable, and b. when the payment deadline granted to the liable person has expired.

The lien is enforced through public auction or private sale.

The Federal Office for Customs and Border Security (FOCBS) can enforce the lien through private sale only with the consent of the lien owner, unless: a. the lien could not be enforced through public auction, or b. the value of the lien does not exceed 1000 francs and the owner of the lien is unknown.

The Federal Council may establish the principles governing the enforcement procedure.

It regulates: a. the additional conditions under which the FOCBS may sell the lien through private sale; b. the cases in which the enforcement of a customs lien can be waived.

First-instance decisions of the General Directorate of Customs may be challenged by filing a claim within 30 days from the date of notification.

The claim must be submitted in writing to the General Directorate of Customs; it must contain precise conclusions and state the facts serving as its basis. The means of proof must be indicated in the claim and, as far as possible, attached thereto.

When a claim is admissible in form, the General Directorate of Customs reviews its decision without being bound by the conclusions presented.

The claim procedure continues notwithstanding the withdrawal of the claim if there are indications suggesting that the contested decision is not in compliance with the law.

The decision on the claim must be reasoned and indicate the avenues of legal recourse.

Decisions based on Art. 42 b can be challenged within a period of 30 days before the Federal Administrative Court without the need for a prior complaint.

The legal remedies against decisions made by customs offices within the customs procedure are governed by the Customs Act of March 18, 2005.

Other decisions made by customs offices or those made by the district directorates, under the present law, may be appealed within 30 days to the General Directorate of Customs.

Anyone shall be liable to a fine of up to five times the amount of the tax loss incurred, unless Art. 14 of the Federal Act of March 22, 1974, on Administrative Criminal Law (DACL) is applicable, who: a. produces or rectifies distilled beverages without the right to do so; b. uses distilled beverages or products derived from them contrary to regulations; c. unlawfully obtains a license, a distillation authorization, or another permit, or d. otherwise infringes the rights of the Confederation under the present law.

When the offense is committed as a profession or by habit, the maximum amount of the fine is increased by half. Moreover, a custodial sentence of up to one year may be imposed.

A perpetrator who acts negligently is liable to a fine of up to three times the amount of the tax loss incurred.

Whoever intentionally: a. breaches the conditions of licenses or obligations related to domestic distillation; b. acquires, installs, maintains, or modifies a distillation apparatus without the right to do so; or c. in any other manner, compromises the rights of the Confederation under this law, shall be liable to a fine of up to 20,000 francs. An offender who acts negligently shall be liable to a fine.

Anyone who intentionally evades a tax liability stipulated by the legislation on alcohol or obtains for themselves or a third party another tax advantage to which they are not entitled, such as a refund or restitution of tax charges, is liable to a fine of up to five times the amount of the tax charges evaded or the tax advantage obtained.

If the offense is committed professionally or habitually, the maximum fine is increased by half. Additionally, a sentence of imprisonment for up to one year may be imposed.

An offender acting negligently is liable to a fine of up to three times the amount of the tax charges evaded or the tax advantage obtained.

Anyone who intentionally compromises the collection of a tax charge or attempts to obtain for themselves or a third party another tax advantage to which they are not entitled, particularly by making inaccurate or incomplete entries in the prescribed accounts, omitting required communications, or providing false information, is liable to a fine of up to three times the amount of the compromised tax charges.

An offender acting negligently is liable to a fine of up to the amount of the compromised tax charges.

Paragraphs 1 to 5 apply insofar as article 14 DPA does not apply.

Subject to the same penalties as the perpetrator of the offense is anyone who acquires, receives as a gift, takes as a pledge or keeps under any title, conceals, assists in distributing, or puts into commerce distilled beverages that they know or should presume: a. have been illicitly manufactured or rectified, or b. have evaded the applicable taxes.

Anyone who intentionally violates the control regulations is liable to a fine of up to 20,000 francs.

The perpetrator according to para. 1 who acts negligently is liable to a fine. Minor infringements may be penalized with a warning, possibly accompanied by costs.

Anyone who intentionally: a. violates regulations concerning advertising restrictions; b. violates the prohibitions on retail trade as provided in Art. 41, is liable to a fine of up to 40,000 francs.

The perpetrator according to para. 3 who acts negligently is liable to a fine of up to 20,000 francs.

It is the responsibility of the cantons to enact penal provisions regarding violations of the prescriptions of Art. 41a, paras. 1 and 2, as well as to prosecute and judge such offenses, as well as the violation, in cantonal retail trade, of the prohibitions provided in Art. 41.

Anyone who, intentionally or through negligence, violates a provision of the alcohol legislation, the general instructions issued under such provisions, or a decision communicated to them under the threat of the penalty stipulated in this article, shall be liable to a fine of up to 5000 francs. Minor infringements may result in a warning, possibly with the imposition of costs.

The right to refer the offender to the court for violation of Art. 285 or 286 of the Swiss Penal Code is reserved.

Anyone who, having been left in possession of spirits or ethanol seized as a fiscal pledge by the Federal Office for Customs and Border Security (OFDF), destroys or disposes of them without the authority's consent, is liable to a fine of up to 100,000 francs. If the perpetrator acts negligently, the penalty is a fine of up to 30,000 francs.

The Federal Act on Administrative Procedure (APA) is applicable, unless otherwise provided by Articles 59a to 63.

Subject to Article 57, paragraph 5, the Federal Office for Customs and Border Security (FOCBS) is the competent administrative authority for prosecution and adjudication.

If the foreseeable fine does not exceed 50,000 francs and it is not possible to identify the punishable individuals under Art. 6 of the DPA without resorting to disproportionate investigative measures, the Federal Department of Finance (FDF) may waive the prosecution of these individuals and impose the fine on the company in their stead.

If an act constitutes one or more punishable offenses under the present law or another law, and the prosecution and judgment also fall under the jurisdiction of the OFDF, the penalty incurred is the one prescribed for the most serious offense; it may be appropriately increased.

The statute of limitations for criminal prosecution according to Art. 11, para. 2, of the Federal Act on Administrative Criminal Law (DPA), also applies to the offenses referred to in Arts. 52, 53, and 56.

The provisions of the Federal Act of 22 March 1974 on Administrative Criminal Law concerning the obligation to render a performance or restitution (Art. 12, 13, and 63) are applicable by analogy to the payment of compensation for the tax loss caused to the FDF as a result of an offense.

The tax loss is claimed by the FDF through an administrative procedure decision. If it cannot be precisely determined, it will be fixed by estimation.

Anyone who has obtained or attempted to obtain unduly, for themselves or for a third party, a contribution (subsidy) or any other advantage provided for by alcohol legislation, as well as the commercial operation it represents, may be deprived of the right to contributions for a period of up to three years.

Whoever, without evading the payment of due duties or taxes, without causing fiscal loss or unduly obtaining a contribution (subsidy), causes in any other manner, by an offense, a financial damage to the Federal Department of Finance (OFDF) is required to compensate it fairly, without prejudice to criminal prosecution. The amount of the damages is determined by the OFDF.

The duties provided for in this law are recoverable as soon as they are determined. The heirs are jointly liable for their payment, even if the duties are not determined, up to the amount of the estate. For appeals, they take the place of the deceased.

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The claims stipulated in this Act can be enforced through attachment, even against a debtor who may be subject to bankruptcy proceedings, unless bankruptcy has already been declared.

The decisions and decrees of administrative authorities establishing a claim are equated, once they become final, with enforceable judgments within the meaning of Art. 80 of the Federal Act of April 11, 1889, on Debt Collection and Bankruptcy (DCBA).

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The OFDF may request securities for the tax and other claims, even if they are not determined by a decision that has come into force or if they are not yet due: a. when they are not secured by sufficient and realizable collateral, and b. when their payment appears compromised, particularly if the debtor: 1. makes arrangements to abandon their domicile, head office, or permanent establishment within Swiss territory or to deregister from the Swiss commercial register, or 2. is in arrears of payment.

Securities may be provided in the form of a cash deposit, pledging of securities, a bank guarantee, or a joint surety.

The decision to requisition securities is deemed a judgment within the meaning of Art. 80 of the Debt Collection and Bankruptcy Act (LP) and considered an attachment order within the meaning of Art. 274 LP.

Objection to the attachment order is excluded.

An appeal against the decision to requisition securities does not have a suspensive effect.

Anyone who has mistakenly paid, or has been compelled to pay through enforcement measures, duties that are not due under a valid decision may claim reimbursement of the amount, in whole or in part, within one year from the date of payment.

If, by mistake, a due duty has not been settled or has been settled too low, the Federal Office for Customs and Border Security (FOCBS) may claim the entire amount or the difference from the liable party within one year from the time when this amount is due or from when it was determined. The FOCBS may also claim within one year any sum that was mistakenly reimbursed.

The FOCBS may extend the payment deadline or remit, totally or partially, the duty or fine if, due to special circumstances, the recovery would constitute an act of undue harshness towards the debtor.

In particular, it may grant a deferment for the payment of the duty on specialty spirits, in order to take account of the sales conditions of these products.

The remission or reimbursement of a tax charge to the liable party, who is required under the Federal Alcohol Act to maintain accounting records, occurs only if they provide proof that the goods encumbered with said tax charge have disappeared.

The remission or reimbursement of a tax charge to the liable party only takes place if the merchandise is destroyed under the supervision of the FOCBS within five years from the time when the said tax charge became due.

The Federal Council ensures the implementation of the present law. It issues all necessary provisions and instructions, insofar as this power is not delegated to other authorities.

The Federal Department of Finance submits proposals to it for this purpose and executes the decisions made. It oversees the management of the FDF and takes measures and decisions that are reserved for it by the present law.

The OFDF handles matters related to the enforcement of alcohol legislation.

The Federal Office for Agriculture manages affairs related to the non-distillation use of distillery raw materials.

The FDFA maintains a public register of holders of a license within the meaning of Articles 32 and 34.

The Federal Council may delegate the execution of certain tasks to other services of the federal administration, as well as to cantonal and communal authorities. It determines the contributions to the expenses that must be paid by the OFDF. ... .

Furthermore, the offices of the Confederation, cantons, districts, circles, and communes must, within the limits of their attributions, assist the OFDF. They must, among other things, report any offenses they officially become aware of and assist in establishing the facts and prosecuting the offenders.

Federal officials and employees, as well as all other persons entrusted with the execution of this law, are required to keep confidential the findings they make in the performance of their duties with respect to third parties.

All rights and obligations arising from alcohol legislation are governed by the provisions of this law. ...

Legal relationships resulting from the application of Art. 18 of the Federal Law of December 23, 1886, concerning spirits and the allocation of lump-sum compensations to licensed distilleries remain in effect.

The activities of the authorities are regulated by the provisions of this law, as soon as it comes into force. ...

Upon the entry into force of this law, the available reserves of the Federal Alcohol Administration (FAA), the amount of which shall be determined by federal decree, must be distributed among the cantons in accordance with Art. 22 of the Federal Law of June 29, 1900, on Alcohol. The balance shall be converted into an operating fund of the FAA.

Until the date of the entry into force of a uniform tax rate applicable to distilled beverages produced domestically, the Federal Council may set a higher tax rate for pip fruit brandy than that applied to specialty brandies.

Until the date of the entry into force of a uniform tax rate applicable to both domestic and foreign distilled beverages, the Federal Council may set a higher tax rate for consumable distilled beverages sold by the RFA than that applied to specialty brandies.

The RFA is abolished. Its legal personality is extinguished.

With the abolition of its legal personality, all rights and obligations of the RFA, as well as the contracts related thereto, are transferred to the Confederation.

The Federal Council shall transfer the parts of the RFA attached to the profit center into "alcosuisse sa" and sell the RFA's interests in "alcosuisse sa" no later than 18 months after the transfer.

The Federal Council shall regulate the details and make the necessary decisions for the transfer and sale, including: a. it shall set the date of the transfer; b. it shall specify the properties and designate the limited real rights as well as binding agreements, other rights, obligations, and values that, within the framework of a transfer according to para. 1, are contributed to "alcosuisse sa" in accordance with recognized valuation principles; c. it shall adopt the transfer balance sheet of "alcosuisse sa"; d. it shall approve, at the time of the entry into force of Art. 76 b, the last account and the last management report of the RFA, regulate the transfer to the Confederation of the remaining rights and obligations as well as the corresponding contracts, and adapt the Confederation’s state account; e. it may directly transfer to third parties the assets not transferred to "alcosuisse sa."

The provisions of the Merger Act of 3 October 2003 do not apply to the transfer according to para. 1. The concerned private law relations are thus not modified by the transfer.

The legal acts mentioned in paras. 1 and 2, letter e, as well as in Art. 76 b, para. 2, are exempt from any direct or indirect taxes of the Confederation, the cantons, or the communes.

Entries in the land register, the commercial register, and other public registers related to the implementation of the project in accordance with paras. 1 and 2 are exempt from fees and charges.

The RFA may constitute the necessary provisions for future expenses for the cessation of activities and the reconstitution of unrealized assets.

The public law employment relationships of the personnel of the profit center are transferred to "alcosuisse sa" if they have not been terminated on the day of the business takeover. They are converted into private law employment relationships and are subject to the personnel laws applicable to the new employer.

The former salary is guaranteed for one year after the transfer. The new employment contracts cannot be terminated before the lapse of one year at the earliest.

The years of uninterrupted service within the FCA and the administrative units according to Art. 2, para. 1, let. a, of the Federal Personnel Law of March 24, 2000, before the transfer of the employment relationships, are taken into account.

Other public law employment relationships that have not been terminated at the time of the dissolution of the legal entity of the FCA are transferred to the acquiring administrative unit of the Confederation.

Employees whose service relationships are transferred according to para. 1 and 4 cannot claim the maintenance of their function and rank they occupied. No probationary period can be imposed on them in the new employment contract.

The Federal Council is authorized to assume, using the assets of the RFA, the funding of the employer's obligations for pension beneficiaries of the Alcosuisse profit center who have remained in the Confederation's pension fund, if the provident institution of "alcosuisse sa" does not wish to take over the pension beneficiaries or if their retention in the Confederation's pension fund is in the financial interest of the Confederation.

Holders of a license for the use of untaxed ethanol under previous law must apply for a new usage authorization from the OFDF no later than three months after the entry into force of the amendment of September 30, 2016.

License holders are registered in the ethanol register according to Art. 72 as soon as the authorization has been granted to them.

Appeal procedures pending at the time of the entry into force of the amendment dated September 30, 2016, concerning the determination of the tax and based on a decision under the former law, shall be concluded in accordance with the former law. The new law is applicable to other appeal procedures.

The Federal Council shall set the date of entry into force of this Act. It shall issue the ordinances necessary for its execution. Date of entry into force: January 1, 1933