What qualifies as 'Swiss Made'?

There are quite strict regulations regarding what kind of watch can be considered 'Swiss Made'.

    The world-class reputation of the Swiss watch industry largely stems from its stable quality and reliable performance, earned by generations of watchmakers through their wisdom and hard work. The Swiss watch industry attaches great importance to the use of brand and origin labels, allowing the brand effect and the appeal of 'Swiss Made' to complement each other, providing consumers with the best quality assurance. However, while the 'Swiss Made' label adds lustre to the Swiss watch industry, it inevitably brings trouble—'Swiss  Made' has become one of the most misappropriated labels in the global watch industry. Counterfeit products have caused serious damage to the Swiss watch industry, not only affecting sales but also harming the overall image of Swiss watches. It is estimated that this loss amounts to 8 million Swiss francs annually.

    Protecting the 'Swiss Made' mark has become an important task for the Swiss watch industry. Through the efforts of the Federation of the Swiss Watch Industry, Switzerland enacted the 'Trade Mark and Origin Marking Protection Act' on 1992 8 28, which strengthened civil penalties for non-compliant products.Swissfor Watches' onto strengthen civil and criminal penalties for non-compliant products. Swiss customs also implement stricter supervision on the import, export, and re-export of watches. In the same year, the watch association formulated the 'Ordinance on the Use of the Name

    Swiss made: According to Article 1 of the Swiss ordinance governing the use of the name "Swiss" for watches, the exterior of a watch may bear "Swiss  made", "Swiss" or another expression containing the word "Swiss" only if it meets all three conditions: the movement is Swiss; assembly is completed in Switzerland; and the manufacturer carries out the final inspection in Switzerland.

    Swiss movement: Under Article 2 of the ordinance governing the use of the name "Swiss" for watches, a Swiss movement is defined as follows: it is assembled in Switzerland; its final inspection takes place in Switzerland; and, excluding assembly costs, Swiss components account for at least 50 per cent of the total value of its components. If the movement is Swiss-made but the complete watch is not assembled in Switzerland, the "Swiss" designation may appear only on a component of the movement. The exterior of the watch may bear only the wording "mouvement  suisse" or "Swiss  movement". Article 3 of the ordinance requires the word "movement" to be written in full, without abbreviation, and in the same typeface, size and colour as the preceding word "Swiss".

    'Swiss Quartz' mark: Only watches of Swiss origin may use this mark; non-Swiss watches that use Swiss quartz movements are not entitled to use it.

    'Swiss parts' mark: This mark may be used when the components of a watch movement are Swiss-made but the assembly is completed abroad. However, it may only appear on the movement and under no circumstances may it be used on the exterior of the watch.

    Swiss Movement: According to Article 1992 of the 'Ordinance on the Use of the Name

    The Federation of the Swiss Watch Industry will vote on a new proposal to further tighten the standards for the use of the "Swiss Made" label at its general assembly on 2007 6 28. The proposal primarily concerns Swiss watches and their movements: for watches, at least 80% of the manufacturing value must be generated in Switzerland for mechanical watches, and at least 60% for electronic watches. Furthermore, technical and prototype design must be carried out in Switzerland. Regarding movements, at least 80% of the value of the components must be generated in Switzerland, with the ratio for electronic movements set at 60%.

    Furthermore, technical and sample designs should be conducted in Switzerland. The proposal also sets out regulations for Swiss components and Swiss assembly. The purpose of introducing this new proposal is to protect the 'Swiss Made' brand. This new proposal will not only affect the overall interests of the entire Swiss watch industry but will also involve cooperation with the watch industries of other countries around the world. Manufacturers of mid-range and standard Swiss watches source components from Asian locations such as Hong Kong; if the standards for using 'Swiss Made' are raised, they will be forced to use more Swiss-made parts, which will consequently increase production costs.

    Mr Jacques Duchêne, Chairman of the Exhibitors' Committee of Baselworld and Vice-President of the Federation of the Swiss Watch Industry, recently stated in an interview with the Swiss magazine 'L'Hebdo' that certain Swiss watchmakers primarily import goods from Asia to assemble into 'Swiss Made' finished products, which has caused harm to the development of the entire Swiss watch industry, and this situation cannot continue. In 2006, of the 137 billion Swiss francs in Swiss watch exports, 80% were high-end watches. High-end watches will directly or indirectly drive the sales of mid- and low-end watches in the international market. The new 'Swiss Made' standards will encourage watch companies to relocate their overseas production plants back to Switzerland, promoting the development of the Swiss economy. The existing 'Swiss Made' standards make high-end watches more susceptible to being replicated. It is estimated that there are 4 million counterfeit Swiss watches globally each year, while the production of genuine Swiss watches is only 2500 million. The production of genuine watches has been severely impacted. Mr Jacques Duchêne will accompany the Minister of Economic Affairs to China and Vietnam in 2007 7 to discuss the issue of watch counterfeiting with the governments of both countries.