Swiss watch industry to face tougher regulations
Monday, 2 July 2007
GENEVA, July 1 (Xinhua): Swiss watchmakers have agreed to new regulations making it more difficult for timepieces to receive the Swiss Made label, the official Swissinfo website reported Friday.
At its annual meeting Thursday, the Federation of the Swiss Watch Industry said at least 80 per cent of the production costs for mechanical watches must be attributable to operations in Switzerland.
The percentage will be 60 per cent for other kinds of watches, particularly electronic ones, the industry said in a statement. Exempted are raw materials, precious stones and batteries.
In future, technical construction and prototype development must also be carried out in Switzerland.
Jean-Daniel Pasche, head of the Federation of the Swiss Watch Industry, said he was convinced that the Swiss Made label requiring that only 50 per cent of costs are incurred in Switzerland needed to be strengthened.
He told the SonntagsZeitung newspaper that "many of the large brands fear the label is being devalued in the eyes of consumers."
Current regulations dating back to 1972 refer only to a watch's movements. The body, face and hands can be made anywhere and imported. "But the consumer buys a finished watch, not just its movements," Pasche said.
The federation will now submit its recommendation - supported by 87 per cent of its members - to strengthen the Swiss Made ordinance to the government.
At its annual meeting Thursday, the Federation of the Swiss Watch Industry said at least 80 per cent of the production costs for mechanical watches must be attributable to operations in Switzerland.
The percentage will be 60 per cent for other kinds of watches, particularly electronic ones, the industry said in a statement. Exempted are raw materials, precious stones and batteries.
In future, technical construction and prototype development must also be carried out in Switzerland.
Jean-Daniel Pasche, head of the Federation of the Swiss Watch Industry, said he was convinced that the Swiss Made label requiring that only 50 per cent of costs are incurred in Switzerland needed to be strengthened.
He told the SonntagsZeitung newspaper that "many of the large brands fear the label is being devalued in the eyes of consumers."
Current regulations dating back to 1972 refer only to a watch's movements. The body, face and hands can be made anywhere and imported. "But the consumer buys a finished watch, not just its movements," Pasche said.
The federation will now submit its recommendation - supported by 87 per cent of its members - to strengthen the Swiss Made ordinance to the government.