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I think the current law is something along the lines of at least 50% of the "value" must be Swiss?

>> " ... the components of Swiss manufacture account for at least 50 percent of the total value, without taking into account the cost of assembly."

If the above is true, doesn't that allow for some fairly creative accounting? Let's say a Swiss company buys Chinese movements in bulk for perhaps USD $50 each in volume. Then they do some _very_ minimal work to the movement and sell the resulting watch with a USD MSRP of $800 or $1200.

With the cost of the movement itself being so low, it would seem like the non-Swiss value of the movement would be FAR under 50%, even though the movement is arguably the most important/critical part of the watch.

Can anyone shed some more light on this?
 

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I think the current law is something along the lines of at least 50% of the "value" must be Swiss?

>> " ... the components of Swiss manufacture account for at least 50 percent of the total value, without taking into account the cost of assembly."

If the above is true, doesn't that allow for some fairly creative accounting? Let's say a Swiss company buys Chinese movements in bulk for perhaps USD $50 each in volume. Then they do some _very_ minimal work to the movement and sell the resulting watch with a USD MSRP of $800 or $1200.

With the cost of the movement itself being so low, it would seem like the non-Swiss value of the movement would be FAR under 50%, even though the movement is arguably the most important/critical part of the watch.

Can anyone shed some more light on this?
Since labor is not eligible for accounting in the "value", the direct cost of parts is what counts.

In your example, $25 dollars worth of Swiss made parts must be added...
 

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Which can be a couple of Blued screws....
Do not worry. Have you thought where your car is made?

We live in the Era of Globalisation!!!
 

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Have a read of the Wikipedia definition. The key is in the letters - if a watch is "SWISS MADE", then it must comple under Swiss law - i.e. of the 650 Swiss watch brands who use SWISS MADE, then most will use either an ETA or Ronda movement, with the few who make their own. If you see "Swiss Made", then it is not goverened under the strict law, and hence the answer to your question. It is no different to Champagne, or Tuscan Olive Oil.

http://en.wikipedia.org/wiki/Swiss_Made
 

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I see, thanks! ;-)

The 60% doesn't really appreciably change much at all, imho.

But this part most certainly could
"and the activity that gave the product its essential characteristics must be carried out in Switzerland."
The rule relies on costs and ephemeral components that provide "essential characteristics" that all feed into a very low threshold. Effectively there are many exceptions that permit a lot of non-swiss components to be included in a swiss made or swiss watch. A much-discussed example is the Claro Semag movement.

The more important question is whether the "Swiss Made", "Made in Japan" or "German" brands really tell you anything about the design, quality and potential durability of a specific watch. I think it's pretty clear that country of origin brands are at best uninformative and in some instances are downright deceptive. The reputation of a specific manufacturer is clearly a far better measure of watch quality.
 

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Umm, that's not how I read it.

Have a read of the Wikipedia definition. The key is in the letters - if a watch is "SWISS MADE", then it must comple under Swiss law - i.e. of the 650 Swiss watch brands who use SWISS MADE, then most will use either an ETA or Ronda movement, with the few who make their own. If you see "Swiss Made", then it is not goverened under the strict law, and hence the answer to your question. It is no different to Champagne, or Tuscan Olive Oil.

http://en.wikipedia.org/wiki/Swiss_Made
 
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