Swiss Made Proposed Reinforcement
The FH intends to take an important new step by proposing at its forthcoming General Meeting a reinforcement of the Ordinance of the Federal Council on use of the name Swiss for watches.
Use of the Swiss Made label for watches is covered by an ordinance of the Federal Council dated 29 December 1971, the famous Swiss Made Ordinance, which for a number of years has been subject to many criticisms, particularly inside the industry, because it is considered too lax, but also in legal circles, where the view is that it no longer fully meets the legal mandate specified in the law on trademarks. It is for this reason that the FH Board called for reflection and discussions to maintain if not reinforce the value of Swiss Made on world markets. The FH is in fact convinced that this label is of tremendous benefit to the Swiss watch industry and that it is a vehicle for consumer expectations across the globe.
To protect these values and safeguard public confidence in the label, the FH and its Board reached the conclusion that stricter criteria of origin were required in respect of Swiss Made. They are therefore proposing a draft to their members to tighten up the Swiss Made Ordinance. The final decision will be taken at the General Meeting of 28 June this year, to be held in Biel. The main provisions of the draft concern the definition of Swiss watch and Swiss movement.
With regard to the watch, the draft introduces a new aspect in the form of a value criterion. Accordingly, any mechanical watch in which at least 80% of the production cost is attributable to operations carried out in Switzerland would be considered as a mechanical Swiss watch. For other watches, particularly electronic watches, this rate would be 60%. Technical construction and prototype development would moreover need to be carried out in Switzerland. Raw materials, precious stones and the battery would be excluded from the production cost.
The Swiss movement in the existing ordinance already has a value criterion, namely the rate of 50%. Considering that here, too, the definition needs reinforcing, the draft amends these value criteria. For mechanical movements therefore, the rate would be at least 80% of the value of all constituent parts. For other movements, particularly electronic movements, this rate would be 60%. Technical construction and prototype development in Switzerland would also be a requirement in this case. The draft also stipulates other provisions concerning the definition of Swiss constituent parts and assembly in Switzerland.
The minimum rate of 60 % was not chosen at random: it corresponds to the rate used in the free-trade agreement between Switzerland and the European Union. In addition, with a rate of 80%, the FH proposes to lay particular emphasis on the mechanical watch.
With these proposals, objectives in terms of protecting the Swiss Made label should be attained. The proposed criteria also take into account the place of manufacture and the origin of components, thereby complying with the law on trademarks which serves as the legal basis of the Swiss Made Ordinance. However, it will be up to the FH General Meeting to reach a final decision on the matter.
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