Swiss export controls on dual-use equipment adequate, says auditor

Equipment that can be used for both civilian and military purposes is one area that is testing Swiss neutrality. Gaetan Bally

The export of Swiss equipment that can be used for both civilian and military purposes is being properly controlled, according to the Federal Audit Office (FAO).

The war in Ukraine has highlighted the international trade in dual-use electronic or mechanical equipment that can be adapted for lethal effect.

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Part of Switzerland’s sanctions measures have imposed a ban of dual-use equipment exports to Russia. Swiss neutrality is also being tested by the use of its manufactured goods in Ukraine.

Switzerland exported CHF2.7 million worth of dual-use goods to Ukraine in the fourth quarter of 2022 and CHF4.5 million in the first three months of this year, the Neue Zürcher Zeitung newspaper reported in May. This is much higher than the few thousand francs exported in the first quarter of 2022.

At the same time, exports of dual-use goods to Russia fell. Exports were only worth CHF190,00 in the most recent quarter compared to CHF5.6 million in 2022.

The FAO on Wednesday said export controls, imposed by the State Secretariat for Economic Affairs (Seco) and policed by customs, are fit for purpose under the current conditions.

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Seco has issued an average of 1,744 dual-use permits each year worth around CHF3 billion ($3.4 billion) and rejected two or three export requests per annum. Customs blocked some three percent of exports, the report stated.

Cooperation between Seco, customs and the intelligence service is also deemed efficient. A new digital system to track goods, which went online in June, is expected to aid the risk analysis of exports.

The trade in armaments and dual-use goods is worth an annual CHF35 billion to Switzerland and supports 137,000 jobs, according to Seco.