Trade agreement between countries that mutually grants reduced or waived duties — with a correct proof of origin.
A preferential trade agreement is a trade agreement between countries that, with a correct proof of origin, mutually grants reduced or waived duties. Switzerland has a dense network of such agreements.
Preferential agreements define exactly which rules of origin must be met and with which document the origin is proven. Switzerland maintains a dense network of such agreements, among others through EFTA.
Why this matters for your import.
The preferential status influences from which country goods can be sourced most cheaply — the duty difference can turn out larger than a price advantage at the source.
How you'll come across the term.
We also choose the sourcing source by preferential status: if the origin is right, the duty falls — and with it your landed cost in Switzerland.
Assuming an agreement applies automatically. Without a correct proof of origin and fulfilled rules of origin the preference does not apply.